Do franchise groups requiring franchisees use only one POS system force a higher price?
Mark on March 16, 2013 7:39 AM
Take away competition and you take away pressure to be competitive on price. This is true in business situations almost everywhere. It’s why we caution retailers about certain franchise groups that require in their franchise agreement that franchisees use one particular brand of POS software.
If there is no freedom of choice what incentive is there for the POS software company to offer their most competitive price? Is there a commission of some sort being paid to the franchise group? Is the retailer getting the very best software for their business?
These are important questions that cannot be explored because of the elimination of competition.
Imagine the disappointment if a franchisee were to learn that they paid $20,000 more for their POS system than a similar business nearby that is not part of the same franchise group.
Tower Systems does not have an exclusive relationship of any kind with any franchise group in any retail channel.