Pricing Across Branches: How Franchisors Keep Prices Consistent Without Killing Franchisee Profit

A customer pays P120 for a milk tea in one branch, then P145 for the same drink across town. To them, it is the same brand. To your franchisees, it might be the only way to survive higher rent. Who is right?

In more than 30 years of developing franchise systems at GMB Franchise Developers, pricing across branches is one of the most common friction points we help franchisors resolve.

Why pricing consistency matters

• Brand trust: customers expect the same product at the same value everywhere.
• Marketing: you cannot run a national promo if every branch has its own price.
• Fairness: large price gaps lead to branch-vs-branch competition within your own network.

Why one fixed price is not always realistic

Mall rent in Metro Manila is very different from a provincial strip location. Logistics costs rise the farther a branch is from your commissary. A single price can leave some franchisees unprofitable, and an unprofitable franchisee eventually closes, which hurts the brand more than a price difference.

A practical framework

1. Set a Suggested Retail Price (SRP) per zone. Group branches into two or three zones (for example Metro Manila malls, Metro Manila street, provincial) with a published SRP for each.

2. Define the allowed range in the operations manual. For example, franchisees may price within plus or minus 5 percent of the zone SRP with prior approval for anything outside.

3. Build the franchisee’s margin into your supply pricing. If your commissary or supply prices squeeze the franchisee, no retail price will save them. Review unit economics per zone at least once a year.

4. Handle promos centrally. National promos should state who absorbs the discount. Many disputes start here.

5. Communicate price changes in advance. Give franchisees time to update menu boards and inform regular customers.

Check the law and your agreement

Your franchise agreement should state clearly how prices are recommended, approved and changed, and franchisors should get legal advice so pricing provisions comply with Philippine competition rules. Clear terms prevent misunderstandings later.

The bottom line

Consistent pricing protects the brand; profitable franchisees protect the network. A good pricing policy does both.

Is your franchise pricing policy written down, or does every branch decide on its own? GMB Franchise Developers can help you review your unit economics, zone pricing and operations manual. Message us on Messenger or WhatsApp to book a consultation.

Photo: P1898 / Wikimedia Commons, CC BY 4.0