Litigation
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Establishing and Maintaining Positive Franchise Relations
Posted by Franchise Grade Team April 15, 2016
One of the most important byproducts of the franchisor-franchisee relationship is the state of franchise relations, which can range from positive to negative. The most common and immediate measure of franchise relations is derived from a combination of franchisee surveys, franchisor-franchisee litigation and feedback from a franchisee advisory committee or franchisee association.
Read moreFranchisor Franchisee Litigation: Perception versus Reality
Posted by Franchise Grade Team April 4, 2016
When considering a franchise opportunity, one of the most important items, a prospective franchisee should review is the disclosed litigation between a franchisor and its franchisees. Presented in Item 3 of the Franchise Disclosure Document, this component of the due diligence process has been recommended by franchise attorneys and franchise industry professionals for countless years. There is little doubt that the amount and type of litigation a franchisor disclosed in their FDD can provide insight into the state and quality of franchise relations in a franchise system. However, what it doesn’t reveal is the amount of litigation that’s avoided due to a franchisor and franchisee amicably resolving their differences.
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