HVN 0.66% $4.58 harvey norman holdings limited

I don't think its illegitimate or illegal.A traditional...

  1. 7,309 Posts.
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    I don't think its illegitimate or illegal.

    A traditional franchise model has royalty and marketing as defined numbers (usually a % of sales) as per the franchise agreement.

    I am speculating that the Harvey Norman Franchise agreement is different.

    I am not privy to the Harvey Norman Franchise agreement, but I am speculating, that in times of 'trading' difficulty, Harvey Norman provides some relief to its franchise network. Its done in terms of 'reduction in accounts payable, franchisee sales rebate' or whatever you want to call it. In the accounts its stated as 'franchisee support'. Maybe to obfuscate the numbers.

    Nothing illegal.
 
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