The German Competition Authority holds that franchisees must benefit from central sourcing (Praktiker)

The German Bundeskartellamt rendered a significant decision on the obligation of franchisors to share purchasing advantages with franchisees the 8th May 2006. Praktiker is a leading German DIY-store chain. While the majority of Praktiker chain stores are owned by Praktiker, a small number of stores are run by franchisees. The franchisees were contractually obliged to source their entire demand for the standard line of goods through an affiliated company of Praktiker. Praktiker centrally chose the suppliers and negotiated framework agreements. As Praktiker could bundle the considerable demand of its own stores and the franchisees, Praktiker managed to negotiate very favorable purchasing conditions. However, Praktiker did not share these advantages with its franchisees. When

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Börries Ahrens, The German Competition Authority holds that franchisees must benefit from central sourcing (Praktiker), 8 May 2006, e-Competitions Franchising, Art. N° 12630

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