How to Avoid Litigation in Franchising
There is a host of issues that can arise in a relationship between a franchisor and a franchisee. If not properly addressed, some of these issues can mushroom into legal sparring or even full-blown litigation.
Common issues include the enforcing of system standards, franchisees performing below their and/or the franchisor’s expectations, adapting to changes in the marketplace, diverging values and principles, or compliance with federal and state laws that regulate the franchise relationship.
No matter what the particular catalyst, there are several critical steps a franchisor can take to help assuage – or even avoid – legal issues.
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