International Law

What will the Franchisor Do for You?

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"While discussing a franchise case recently an attorney working with me observed that the franchisor really didn't agree to do anything for the franchisee in its franchise agreement.

Unfortunately most franchisees are under the mistaken belief that franchisors will provide all kinds of support.

When it doesn't happen and the business relationship has fallen apart, the franchisee is surprised to learn that the franchisor isn't contractually obligated to do much of anything.

Which generally means that if a lawsuit occurs the franchisee may have very little recourse."

Item 11 of the the UFOC or FDD will clearly spell out the legal obligations of the franchisor.

Consider for example the Item 11 of Pizza Hut dba as Wingstreet.

What do they say that their contractual obligations to you are ?

Well, they will loan you their operations manual, provide you with the plans to build your Wingstreet franchise, provide "customary" resources to expand the Wingstreet brand, and bugger all else.

This is simple - read it and complain like crazy before you sign on the dotted line.

Full post as published by Misleading Advertising Law on July 02, 2008 (boomark / email).