The case for

Article Abstract:

The Fair Franchising Standards established by the American Association of Franchisees and Dealers will provide both franchisees and franchisors with a starting point for collectively negotiating franchise agreements. Franchise agreements have historically been written by franchisors and have failed to adequately integrate the interests of franchisees. By establishing fair standards and encouraging franchisors to negotiate with franchisees on a collective basis, instead of doing so individually, a level playing field can be developed that will benefit franchisees, franchisors and consumers.

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The case against

Article Abstract:

Franchisees should have the opportunity to correct harsh provisions in franchise agreements, but asking franchisors to impose on themselves an obligation to bargain collectively with franchisees is contrary to business realities. The American Association of Franchisees and Dealers' Fair Franchising Standards go too far by asking franchisors to relinquish all bargaining strength. The standards mistakenly assume that different franchisees will not have conflicting interests. They also fail to address how franchisors can be assured that they are dealing with a representative collective unit.

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Drafting exclusive territory provisions in franchise agreements

Article Abstract:

Many franchisees wish to include clauses in franchise agreements that provide for exclusive territory, and franchisors should draft such clauses to ensure that future business opportunities are not impeded needlessly. It is better to employ a uniform radius clause because more-detailed metes and bounds clauses open up territorial issues to complex negotiations. The clause should account for geographical restrictions, co-branded franchises and franchises in airports, malls and arenas that are unlikely to compete with the franchisee's location.

Methods

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