Harvey Norman franchisees may face less favourable trading terms with suppliers following the retailer's decision to make it clear it was not liable to pay for their stock.

Days after Harvey Norman changed the accounting treatment for franchisee receivables in its 2017 accounts, analysts are still trying to understand the implications for franchisees and Harvey Norman's future competitiveness amid increased competition from JB Hi-Fi and The Good Guys and the imminent arrival of Amazon.