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Don’t assume the franchisor will automatically renew the agreement, and don’t expect to sell the business at the end of the term.
The Globe and Mail
July 6, 1998
Franchise deals tie owner's hands
http://www.wikidfranchise.org/19980706-franchise-deals
only through franchisor (tied buying), Tied contracting, Contracts across systems are virtually the same, Indemnification provisions, Protect gross negligence, wanton recklessness and intentional
http://www.wikidfranchise.org/19970801-the-warning
and one-sided contracts.
Of the 40,000 franchisees in Ontario, 5,000 are presently battling it out in court with their franchisors. Les Stewart is one of them. He’s locked into a lawsuit with the lawn
http://www.wikidfranchise.org/19990101-state-of
contract much tougher, Franchisor has right to buy outlet before anyone else, Must work only as a franchisee, Sharecropping, Renting a business, Re-sales as a profit center, Re-sale permission unreasonably withheld, Must buy only through franchisor (tied buying), United States, 19970422 Comment 9
http://www.wikidfranchise.org/public-comment-139
that tied buying is a major problem, pointing out that there are more than two dozen different rebates in the grocery industry alone. “Up to a third of the retail price of a product is made up
http://www.wikidfranchise.org/20000309-franchise-law
contract with the franchisor. These are complicated documents. Be certain to get a franchise attorney – not just a general business attorney – to review and negotiate your contract. As Kezios advises
http://www.wikidfranchise.org/20000412-the-lowdown
Comments, United States, 1997, American Franchise Association, AFA, Misrepresentations, Non-compete restrictions, Disputes heard on franchisor’s home turf, Right to associate, Retaliation, Intimidation, Must buy only through franchisor (tied buying), Tied contracting, United States, 19970429 Comment 29
http://www.wikidfranchise.org/public-comment-153
. Shell, in its appeal, said it was merely changing an outmoded rent system based on the amount of gasoline sold to one tied to the overall value of the locations which had begun to sprout convenience
http://www.wikidfranchise.org/20091210-gas-station
Jesu Dasan figures he lost $180,000 in the 20 months he operated a fast-food franchise in Scarborough, He alleges the franchisor changed the terms of the contract, which drastically reduced
http://www.wikidfranchise.org/19981203-frustrated-franchisees
, Credence goods: taking advantage of the innocents, Must arbitrate disputes, cannot litigate, Must buy only through franchisor (tied buying), Opportunism: contract creates powers which are used to strip
http://www.wikidfranchise.org/20100903-appeal-rulings
