Litigation between franchisors and the business owners that buy into their brand is on the rise as franchisors becomes more aggressive about enforcing contracts and a growing number of franchisees find new ways to assert their rights. Add to that recent California court decisions favoring franchisees, increased disenchantment with arbitration and new Federal Trade Commission rules requiring more disclosure by franchisors, and it's clear there's a contentious mix brewing.
August 21, 2007 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
Litigation between franchisors and the business owners that buy into their brand is on the rise as franchisors becomes more aggressive about enforcing contracts and a growing number of franchisees find new ways to assert their rights.
Add to that recent California court decisions in favor of franchisees, increased franchisor disenchantment with arbitration and new Federal Trade Commission rules requiring more disclosure by franchisors, and it’s clear there’s a contentious mix brewing.
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