The franchise arrangement is a great way for both the franchisor and the franchisee to benefit from operating a business. The franchisor has already established itself as a stable brand with national, or even international, reach. So strengthening their position is a bonus, especially if they can franchise out their operations to an entrepreneur or someone who wants to run an individual franchise. For the franchisee, they get the chance to shine, being able to operate a business with an already-established reputation, previous tested safety and training regulations, and a robust set of other benefits.
This is why you see so many McDonald’s franchises everywhere. When a company reaches a certain level of recognition and stability, the franchise route can be a mutually-beneficial option.
Establishing a productive franchise relationship between the franchisor and the franchisee still takes time, though, and there will be plenty of legal questions being asked by both sides in the early days of the arrangement. Sometimes, this arrangement may not work out and a dispute will arise. Again, there will be plenty of legal questions about how this dispute will unfold and how a solution can be obtained.
Whether you are the franchisor or the franchisee, you will want legal representation during this process. At Kaufman & Forman, we have extensive experience with franchise laws. We have served people in Atlanta and the great state of Georgia for decades, and we want to help the parties involved with franchise litigation so that their business dreams can be realized.