Laws in Favor of Franchisees
Laws in Favor of Franchisees
When you open a franchise, the responsibility of owning and managing it can be overwhelming. Another important aspect is maintaining harmonious business interactions and relationship you establish with your franchisor. It is possible that during these interactions you may feel that the franchise agreement favors your franchisor company more and does not protect all your interests. In such a situation, you will do well to hire the services of a franchise lawyer to help negotiate your business deal with the franchisor in your favor, understand important documents involved in the transaction process and to better understand franchise laws laid down by your state. Franchise laws and regulations, in particular, have undergone tremendous changes in the recent past to incorporate the best interests of the franchisee.
Here is a list of some of the laws created in favor of franchisees:
A new law mandates that the franchisor provides detailed information about the litigations and lawsuits it has faced or filed in its franchises operations. This will give you an idea about the disputes, resolutions and the business relationship you can expect to share with the franchisor company.
Another regulation states that the franchisor company should specify to the franchisee whether it is selling the product or services directly and if so how. If the franchisor is selling the products online or through a store located in the same region as your franchise, then chances are that it will affect your business and sales negatively. In case your franchisor has another store located near yours, your franchise lawyer may advice you against taking up this franchise.
A new change affecting the laws governing a franchisor- franchisee relationship is that the franchisor must state clearly whether he expects his franchisees to be discreet about their business dealings. If this is so, then you will not be able to talk to other franchisees and get any pertinent information you want, as they may be bound by a confidentiality agreement. One of the benefits of talking to other franchisees is that you will get an opportunity to know more about the training programs the company provides its franchisees, their advertising funds, improvement programs and the franchisor's involvement in the day to day functioning of the company. So if your franchisor does not allow you to contact other franchisees, then you could lose out on a wealth of information.
A new law requires franchisors to detail the circumstances under which old franchises were transferred, sold or terminated. This information will help you understand what situations can be detrimental to your present franchise holding.
These are some laws created for the benefit of the franchisee and keep their best interest at heart. It may not be possible for you to be familiar with all these laws. To help you with the legalities involved, it is best to hire the services of a franchise lawyer who specializes in franchise laws and helps franchises understand agreements, negotiate with franchisor and other legal issues. SmartLipo Triplex Liposuction - Safe and Reliable Procedure Parts of a Tourism Brochure that You Must Never Forget Scotch Bonnet Peppers: What's In Your Hot Sauce? Traveling North eastern Part of India Booking a Discount Hotel in London Made Easy Golden Triangle Tours- A Taste of Indian History Delray Beach used Hyundai Sonata gets even better as a 2011 model Really Cheap Hotels Available for Major Tourist Destinations! Kerala Tours-Journey to God's Own country Virgin Christmas Offers: Benefits With Tempting Offers Wildlife tours are no less than temple tours Travel in Thailand - An Exotic Destination for Everyone Late Deals To Ibiza Are Fantastic For Hedonistic Holidays