1. Bricks to Clicks: The Post-Pandemic E-commerce Reckoning.
- Author
-
Ayres, Thomas R.
- Subjects
- *
ELECTRONIC commerce , *ANTITRUST law , *ELECTRONIC commerce laws , *CONTRACTS , *LEGAL judgments , *BUSINESS planning , *BUSINESS hours , *MOBILE learning - Abstract
If franchisors require their franchisees to contribute to capital expenditures on digital infrastructure, then profit-sharing from e-commerce activities may offer an acceptable solution.[80] In a shared e-commerce strategy, the franchisor controls the e-commerce component of the global sales strategy, and the franchisees contribute from pre-sales to local fulfilment and customer service. For those franchisors that compel franchisees to partner with third-party aggregators for delivery, franchisees pay third-party aggregators approximately twenty-five percent on each order, which means that many deliveries, particularly smaller ones, are not profitable.[48] Franchisees forced to provide free delivery-which consumers have come to expect-with their own vehicles and drivers fare no better. From the franchisor's perspective, the increased customer traffic to websites and mobile apps helps raise brand awareness and leads to more clicks and taps that generate revenue for both the franchisor and franchisees, including from increased in-store foot traffic from customers returning items bought online. Since most disputes between franchisors and franchisees are resolved in private arbitration, there is a dearth of caselaw discussing how deeply and broadly franchisors may extend their digital reach into franchisees' marketspace. [Extracted from the article]
- Published
- 2021