FRANCHISES - Law of Franchising a. Many states have adopted...

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FRANCHISES This is an arrangement where a Franchisor licenses Franchisee with the right to use intellectual property in marketing goods or services under specific conditions. I. Types a. Distributorship – a manufacturing concern licenses a dealer to sell its product b. Business Format – Franchisor provides the trademark and franchisee is responsible c. Manufacturing or processing – Franchisor transfers the essential ingredients or formula to make a particular product. II.
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Unformatted text preview: Law of Franchising a. Many states have adopted special laws which require disclosure to limit the opportunities for the seller to engage in fraudulent practices b. Franchise Agreement key provisions i. Franchise fees & other charges ii. Location & business organization iii. Quality controls & other restrictions iv. Termination c. Relationship of Franchisee to Franchisor Is the Franchisee an agent or independent contractor? It is an independent contractor because they sign an agreement on that....
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