Definition: Supplier of a franchising chain or a buying group

Category: Distributive trade

The variable refers to enterprises which are, in pursuance of a franchise agreement or a membership contract to a buying group, (one of) the wholesaler(s) in charge of supplying the group.

Franchising is a system of collaboration between two enterprises which are quite separate but bound by a contract under which one of them grants to the other, in return for payment of a fee, the right to use under specific conditions a trademark or caption characterised by a symbol, and also guarantees assistance and regular services intended to facilitate the use of the said trademark.

A buying group is a group of enterprises set up in order to obtain from suppliers more favourable terms than each business could obtain on its own.