Franchisee Product Fee: How Much Is It and How to Avoid It?
Entrepreneurs running franchise outlets often offer their customers drinks and food in single-use takeaway packaging. Such packaging is subject to a recycling obligation or a product fee (in the event of failure to achieve the required level of recycling), which should be paid by the franchisee, not the franchisor. How much is the product fee and can the franchisee avoid it?
Division of responsibilities between franchisee and brand owner
Running a franchise outlet takes many of the responsibilities off the entrepreneur. The franchisee usually doesn’t have to worry about developing their own business model, designing new services, expanding their product portfolio, or acquiring technical support and IT tools. These and other tasks specified in the agreement are usually performed by the franchise partner in exchange for cyclical license fees. However, it should be remembered that the franchisor does not take over all of the franchisee’s responsibilities – if you run a franchise outlet, you still have to fulfill, for example, environmental obligations resulting from the act on the management of packaging and packaging waste. One of them is the obligation to achieve the required level of recycling or pay a product fee for the introduced packaging.
Are you a franchisee? You are obligated to pay a product fee!
Every entrepreneur introducing products in packaging must take responsibility for the waste that is created from this packaging. It can do this in two ways: by ensuring the recycling of this waste or by paying a product fee for each kilogram of the unrealized level of recycling. Contrary to appearances, This obligation applies not only to producers, but also to franchisees who sell drinks and food in takeaway packaging. . Jeśli prowadzisz punkt franczyzowy, w którym sprzedajesz np. kawę, posiłki lub przekąski w opakowaniach, to obowiązek rozliczenia się z tych opakowań spoczywa na Tobie, a nie na franczyzodawcy. Nie zmienia tego nawet fakt, że wszystkie te produkty sprzedajesz pod marką franczyzodawcy.
In accordance with applicable law, every franchisee introducing packaged products must:
- ensure the recycling of packaging waste generated from them,
- pay a product fee (if the required recycling level is not achieved),
- conduct or finance public education campaigns.
These obligations result from the provisions of the act on the management of packaging and packaging waste. According to the opinion from LEX Environmental Protection Law: The entity running the station is responsible for the packaging of meals served at the petrol station.
Source: https://www.prawo.pl/biznes/kto-ponosi-oplate-produktowa-za-opakowania-jedzenia-na-stacji,169823.html
Similarly, these regulations apply to companies running other franchise outlets and serving, for example, drinks in takeaway cups.
Does the mandatory product fee only apply to franchises?
NO. The obligations: recycling and paying the product fee apply to all entrepreneurs indicated in the act. However, our experience shows that it is the franchisees who are often unaware of their obligations . Many entrepreneurs running franchise outlets wrongly assume that recycling and the product fee remain with the franchisor, whose logo appears on all beverage and food packaging. Such ignorance often has unpleasant consequences – failure to meet environmental obligations results in the immediate need to pay a high product fee, and in some cases also in the imposition of a financial penalty. Let us recall: the obligation to ensure the recycling of packaging waste and to pay the product fee may also apply to franchisees running:
- restaurants, pizzerias and other catering outlets,
- cafes (including mobile ones!), drink points (e.g. bubble tea),
- gas stations,
- shops,
- bakeries and confectioneries.
The above calculation is only an example – the mandatory product fee may also apply to other companies. It is also worth remembering that the act provides for a number of exemptions from the obligation to pay the product fee.
Want to check if the product fee also applies to you?
What packaging is covered by the product fee?
The product fee for packaging and packaged products is covered by among others all packaging used for takeaway food and drinks, e.g.:
- cups for drinks,
- cup lids and covers,
- dishes, e.g. plates, bowls,
- food containers (with or without lid): boxes, trays, boxes, buckets, paper packaging for popcorn or fries.
As a franchisee introducing products in packaging, you are required to keep records of this packaging, broken down by the type of material from which it was made. Such records are the basis for determining the amount of the product fee due, which is calculated based on the weight of the introduced packaging for which the entrepreneur has not achieved the statutory level of recovery and recycling.
Product fee amount – how much will the franchisee pay?
Individual packaging materials are subject to different product fee rates. In the case of the most popular types of takeaway food and drink packaging, the product fee rates are as follows:
- plastic packaging – PLN 2.70/kg,
- paper and cardboard packaging – PLN 0.70/kg,
- multi-material packaging – PLN 1.70/kg,
- wooden packaging – PLN 0.30/kg,
- other packages – PLN 1/kg.
Although the amounts for 1 kg of packaging are not very large, the sum of the product fee for the entire year often makes entrepreneurs dizzy . Importantly, the product fee for packaging can be avoided by fulfilling the recycling obligation. Each entrepreneur can do it on their own, ensuring recycling of 100% of the introduced packaging or with the help of the Interzero recovery organization, without worrying about minimum recycling levels.
Pass on the responsibility to Interzero and avoid the product fee
Fulfilling environmental obligations is only a small fraction of all the challenges you face as an entrepreneur and franchisee. Fortunately, you can delegate some of your responsibilities to Interzero’s environmental experts. This will save you not only time, but also money – for a small fee , we will take over your obligation to recycle packaging waste, and you will avoid a high product fee . By entrusting your obligation to Interzero, you will gain:
- fixed, low cost of taking over the obligation,
- the ability to conclude an online contract in 3 simple steps,
- official confirmation of the correct performance of the obligation for a given year,
- convenient access to documents related to the assumption of the obligation via the Moje Interzero portal,
- a certificate for your company and an annual report on the conduct of Public Education Campaigns.
Check how much you can save by transferring your recovery and recycling obligations to Interzero!
