Franchising
Disputes in franchising usually arise because a franchisor has not provided adequate information, or else has provided information that could be misleading. Another common complaint is that one or both of the parties is unwilling to negotiate
The responsibility is not always just on the franchisor. Franchisees need to differentiate between a franchise agreement and the disclosure document. The disclosure document contains the information that a franchisor must give the franchisee. It gives a prospective franchisee time to read about the business details of the franchise and to get legal or financial advice. Having read and understood the disclosure document, the franchisee is then asked to sign a franchise agreement. This is the business contract and contains the specific terms and conditions of the franchise. The disclosure document will usually only contain a summary of the terms and conditions of the franchise agreement.
