When it comes to breaking a franchise contract, the law usually swings in favor of the franchiser. That’s mainly because franchisers are able to limit their liability through UFOCs and franchise agreements with built-in clauses and disclosure. Because franchisers must list and substantiate earnings claims, current and past litigation, how many franchises are in operation, and how many have been terminated, along with anything else material to the business, franchisees have less wiggle-room when opting out of an agreement.
Read the full story on AllBusiness.com.
Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.
To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.