Franchisee Litigation Against Franchisors
Opening up your own business is exciting, but if you get caught up in that excitement and fail to carefully review all legal documents and understand your obligations, you could find yourself in court down the road. Franchise agreements have been carefully drafted and reviewed by the franchisor’s lawyers, and you should assume that the document reflects the franchisor’s best interests.
The obvious goal in franchising is to run a successful business where you make significant money. Occasionally things do not go as planned. Maybe the industry is not a good match for your skills and background or you are not making the money you thought you would or did not start out with enough working capital to get you through those first couple of years. You may feel that the franchisor is not fulfilling its obligations. For instance, maybe it did not provide adequate training or disclose "hidden" fees and expenses or is not doing as much advertising as it said it would. If your reason for taking a franchisor to court is the latter, you have a stronger case. If you decide you do not like franchising or are struggling financially you may end up in even deeper financial woes.
Read the full story at AllBusiness.com.