What kind of rights and protections are given to franchisees under a Franchise Agreement?

Expert Solution

Following rights are available to franchisee under a financial agreement.

1. Right to equity in franchised business.

2.Right to franchisor's loyalty,good faith and fair dealing. Right to receive information and guidelines relevant to business.

3. Right to fiduciary duties

4. Right to trademark protection.

5.Right of disclosure from the franchisee and access to financial performance of the franchisor to decide on the future of association.

6.Right to training, support and marketing assistance.

7. Right to competitive sourcing from the franchisor with regards the service and products.

8. Right to access to franchisor

9. Right to form association with other franchisees.

10. Right of renewal and termination of franchise due to lawful cause.

11. Right to dispute resolution.

Protections-

1. Protection of market.

2. Protection against unlawful termination of franchise without any reason.

3.Protection under local laws and regulations.

4. Protection of right to compete post termination.

5. Protection of trademark.

6. Protection against encroachment of territories by other franchisee.

keosha answered 1 year ago

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