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© 2004 West Legal Studies in Business A Division of Thomson Learning

Franchise Contract

The Franchise Contract can include:

Franchisee’s type of business entity including capital structure, sales quotas and record keeping.

Location of the Franchise

Premises is leased or purchased.

Quality Control is a legitimate issue for Franchisor because of good will, reputation and trademark value.  Courts will not question Franchisor’s strict supervision but Franchisor may be liable for torts of agents.

Case 35.2:  Miller v. D.F.Zee’s Inc.  (1998).

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