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Franchising - common pitfalls & disputes

NZ $45.00
incl GST
Sarah Pilcher 2017 Deirdre Watson 2017
Sarah Pilcher
Principal, The Franchise Lawyer
Auckland
Deirdre Watson
Barrister
Auckland

Authors: Sarah Pilcher, Deirdre Watson
Published: 16 June 2017
Pages: 43

Introduction

This part of the paper looks into some of the less attractive features of franchising. It covers what the lawyer needs to look out for when advising a prospective franchisee for a due diligence review of a Franchise Agreement. The focus is on advising franchisees although much of the paper will be of interest and relevant to lawyers advising franchisor clients.

The writer’s approach to advising potential franchisees has evolved over many years of seeing what can happen when franchising goes wrong or when franchisees get surprises about what they signed up for, or what the franchisor can do.

Assume nothing about what a client understands regardless of their past business experience or the level of investment in the franchise business. The size, solid appearance and general reputation of a franchise chain can bear little resemblance to the experience of being a franchisee in that system.

When an unhappy franchisee seeks advice for a problem, the questions they ask and the complaints they have often confirm that they had very little appreciation of what they agreed to when they signed their franchise agreement.
 

Content outline
 

  • Common pitfalls and disputes
  • Typical franchise disputes and how to solve them
  • Restraint of trade update
  • Complaints about the quality of the services provided by the franchisor
  • Compulsory mediation clauses
View contents page

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