Franchise Glossary
Approved Supplier
What is Approved Supplier in franchising?
A vendor vetted and authorized by the franchisor as a source for products, ingredients, equipment, or services used in your franchise. Sometimes called a designated supplier. Most franchise agreements require you to purchase certain items exclusively from approved sources to maintain quality and brand consistency. This can work in your favor since franchisors often negotiate volume discounts you could not get alone, but it can also mean paying above-market prices if the franchisor marks up supplier costs. Review Item 8 of the FDD for full supplier details.