Vendor agreements are contracts between the franchisor and third-party suppliers or service providers who offer products, equipment, or services needed to run the franchise. These agreements often include pricing terms, delivery schedules, and quality standards. In many cases, franchisors have negotiated preferred vendor agreements, allowing franchisees to benefit from discounted prices, consistent product quality, and reliable service. Franchisees should review vendor agreements to ensure they align with their operational needs and budget.