Which of the following is exempt from procurement?

Franchise agreements are often exempt from procurement processes due to their unique nature and specific regulatory frameworks. These agreements typically involve a significant level of investment and a long-term relationship between the franchisor and franchisee. The terms of a franchise agreement are highly specialized and tailored to the specific business model of the franchise, which can differ significantly from standard procurement processes that are more suited to commodity items or services.

This exemption acknowledges the complexity and individual negotiation that franchise relationships entail, allowing organizations to engage directly with franchisors, which can facilitate better alignment with the specific goals and operational needs of the franchise.

In contrast, standard contracts, routine office supplies, and service agreements with vendors generally fall within the typical procurement practices that organizations use to ensure fair market prices, supplier evaluations, and compliance with policies. These items usually do not have the same level of specificity or require the same direct negotiations as franchise agreements do, making them standard aspects of the procurement function.