need to have carefully worded legal documents that do not inadvertently create an agency relationship or other employment-related arrangement as they structure their franchise programs.
Therefore, cautious franchisors
will continue to review the franchise regulations of each state in which they intend to market franchises.
in the process of creating their systems would be well advised to build a good screening and selection process into their initial model.
In past years, lack of territorial protection was a major complaint of franchisees, because franchisors
opened company stores or franchise outlets relatively close to each other.
But, in 45 per cent of cases, we found franchisors
did make representations in their literature which, if inaccurate, left them exposed to misrepresentation claims being lodged against them by aggrieved franchises.
Either a continuing financial obligation by the franchisee to the franchisor
or the payment of a franchise fee.
When built correctly from the beginning, every new location will only serve to strengthen the franchisor
and its current franchisees.
reviews and makes recommendations regarding the franchise lease.
who carries on business in Alberta already knows that compliance with the provisions of Alberta franchises legislation is essential.
Marks is a specialist in franchise cases and has represented more than 100 franchisees against their franchisors
Since brand standardization is the key to each franchise system, the general counsel's proposed standard makes franchisors
and franchisees particularly susceptible to joint employer findings.
are no longer required to meet registration and filing requirements contained within the Old Act; and
Selected from among 3,000 franchisors
to whom the annual survey was mailed, GNC Franchising, Inc.
In other words: franchisors
need to understand the issue, accept that there is an issue, deal with the issue, and plan for the issue if they expect to have a successful franchise system.
CDCs identify entrepreneurs and real estate, help entrepreneurs sign agreements with franchisors
, screen potential workers, help secure building permits and approvals, and address other concerns to help ensure successful ventures.