Discount given by service provider from own pocket

184 views 1 replies
How can treat if Discount given by franchisee from own pocket :

For example

If product price Rs. 100

Amt recd from customer Rs. 90

Discount given by franchisee Rs 10

Please note as per agreement franchisee not sale product below 100.

Franchisor want full Rs. 100 in his account from franchisee
Replies (1)
If the franchisee selling the product @ 90 to customer, then there will be RS10 loss because franchisor needs full amount of Rs 100.

So Mr Jatin , kindly tell me what is the profit or on what basis profit is given from franchisor to franchisee?
In this case it cannot be treated as discount.

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