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