American manufacturers, suppliers, distributors, and retailers are bearing the burden of the U.S. tariffs imposed on Chinese-sourced goods through increased prices. Franchisors and franchisees may view this as a problem for their supply chain, whether internal or external, and they are exactly right.
But that also means it is a problem for the franchise system as increased costs in the supply chain have a way of making it into the 'P & L' of any franchisor or franchisee today.
For that reason, franchisors and franchisees who import Chinese-sourced goods directly may want to seek an exclusion for any applicable List 3 Chinese-sourced goods and if not the direct purchasers of goods, they should have discussions with their suppliers about what the suppliers are doing to seek an exclusion for such List 3 Goods.
