Terminating a franchise agreement, or getting out of the franchise relationship, is a legal result that franchisees and
franchisors often seek.
The relationship between a franchisor and a franchisee is an imbalanced one, where
franchisors often impose «take it or leave it» terms and maintain significant control over the operation of your business and your bottom line.
While
franchisors often work to simplify business operations, even the simplest business model requires some intelligence to run.
When a franchisees is in financial distress and looks to either close shop or otherwise get out of the franchised business,
a franchisor often...
As the «new kid on the block» with an unproven track record, a startup
franchisor often has a difficult time convincing landlords that it is the...
Not exact matches
Since
franchisors can depend on their franchisees to undertake site selection, lease negotiation, local marketing, hiring, training, accounting, payroll, and other human resources functions (just to name a few), the
franchisor's organization is typically much leaner (and
often leverages off the organization that's already in place to support company operations).
And since the cost of becoming a
franchisor is
often less than the cost of opening one more location (or entering one more market), your startup risk is greatly reduced.
This means that as a
franchisor, not only do you need far less capital with which to expand, but your risk is largely limited to the capital you invest in developing your franchise company — an amount that is
often less than the cost of opening one additional company - owned location.
If one franchisee goes under after building out a location, the
franchisor can
often turn around and sell the location to someone else at a discount.
Attorney Knack is
often approached by companies considering expanding their operations by becoming
franchisors.
The average consumer of legal services just doesn't engage with a lawyer
often enough to warrant developing a relationship with a franchise — and franchises, as any
franchisor will enthusiastically tell us, are all about cultivating consumer relationships.
Defending claims against lawyers in the current climate is an uphill battle: Franchisees are
often treated by the courts almost as a «protected class» as judges seem to strive to make findings in their favour in disputes with
franchisors over disclosure.
Faced with such a heavy damages claim, a
franchisor will
often claim against the lawyer, alleging that the lawyer either drafted an inadequate disclosure statement or failed to warn the
franchisor of the consequences of inadequate disclosure.
Dr Hubertus Thum speaks to Lawyer Monthly about how foreign investors are
often unaware about good will indemnity and investment compensation, and common issues
franchisors may fall into under Austrian regulations.
Often the
franchisor wants the franchisee to conduct his own marketing activities within his region.
Often a
franchisor will be able to exercise what is commonly referred to as «a self - help remedy» by terminating the franchise agreement and either shutting down or taking over the location without going to court.
The Commercial Referral Network is the brainchild of its president, Tony J. Wood, who says he learned from his experience with a major national
franchisor that it's
often difficult for residential specialists to find a commercial broker to handle the occasional commercial lead.
During most of the three - decade history of the franchise movement in real estate, the strategy of most
franchisors was to acquire as many franchisees as possible,
often regardless of individual market share.
«We're offering a business - in - a-box, if you will,» he says, noting that the franchisees they brought aboard who had been with other real estate companies
often complained about having had minimal support from their previous
franchisors after initially signing on with them.