How best to resolve serious disputes between franchiser and franchisee remains a matter of, well, disagreement.
For example, many agreements have arbitration clauses that prevent individual franchisees from suing a franchiser in court.
"A franchiser salesman will make you fall in love with the concept as if you were a customer, " says Michael J.
Disclosure documents also include a system's franchise agreement, which is an overview of the requirements of the relationship between the franchiser and franchisee.
Honeywell ( HON - news - people ), restaurant and hotel group Carlson, hair salon franchiser Regis and a large U.S. mining company.
With approximately 600, 000 fans on Facebook, there is no doubt that Cold Stone Creamery, owned by Arizona-based franchiser Kahala, is popular within the realm of social media.
The 100-employee company has signed up close to 50 customers, including Honeywell, restaurant and hotel group Carlson, hair salon franchiser Regis and a large U.S. mining company.
The franchiser owns a trademark or brand, which he (or she) agrees to allow the franchisee to use for a fee (often an original purchase price plus a percentage of sales).
Franchising involves two parties, the franchiser and the franchisee.
"Any time a franchiser discloses the fact that a significant amount of their franchisees are up in arms against them, it's pretty serious business, " says Mario L. Herman, an attorney in Washington, D.
On that note, if you're wondering whether a franchiser has ever been sued, consider that federal law mandates that franchise disclosure documents cite any significant litigation it's been involved, including lawsuits filed by franchisees or groups of franchisees.
These documents may have details that can give you insight into a system's strengths and weaknesses, including the franchiser's revenue, the number of units that have been sold and resold over the years, and whether the franchiser has been involved in any significant lawsuits.
应用推荐