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@ajarnjenny wrote:

I would have thought that you would have to sign a franchise agreement for the supplier to make those restrictions.

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a franchise agreement?

any sale is a contract and the contracting parties can stipulate any terms of the contract they want. As long as they both agree, then the contract is enforceable.

(and as long as it is legal)

If one party does not agree with one of the terms of the contract, then they obviously shouldmn't enter into the contract with them.