October 2014
Intermediate to advanced
618 pages
19h 56m
English
Content preview from Restaurant Franchising, 3rd Edition
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95
CHAPTER 4
FRANCHISING AGREEMENTS
AND LEGAL DOCUMENTATION
“There is no substitute for checking the track record of a franchisor by
personally talking to at least 100 prior purchasers.”
—FTC (Federal Trade Commission)
F
ranchising is a legal contract between a franchisor and a franchisee.
Therefore, all laws pertaining to contractual agreements apply to fran-
chising. Additional laws pertain to franchising and deal with the franchisor–
franchisee relationship; these exist at both the federal and state level. The
major trade regulation rule under the jurisdiction of the Federal Trade Com-
mission (FTC or the Commission) is referred to as the Franchise ...
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