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HOME :: Legal  
No One Wins in Business Contract Legal Disputes
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The franchising industry has gotten to be a completely litigious industry, and part of the reason is because franchise attorneys on both sides of the spectrum; franchise system corporate lawyers, and franchisee rights activist lawyers meet on the battlefield attacking one another's clients.

However, nobody really wins when franchisees and Franchisor get into lengthy legal disputes, just like the kids never win when parents get divorced and sue each other for years on end.

Franchise systems should avoid lawsuits with their franchisees, and franchisees should not threaten to sue franchisors or run off and immediately seek legal assistance from a franchise attorney, when they can most likely work things out for the betterment of both.

Franchising works because it is a win-win situation, and it stops working when it becomes adversarial on either side. Once that happens everything breaks down and generally there is animosity on both sides, communication stops, and there is no longer support for the franchisee of a franchise system.

Franchisees need their franchisor for support, and the franchisor needs the royalty payments from the franchisees. Therefore, when a franchisee succeeds the franchisor succeeds. And when the franchisor succeeds, more franchisees are brought on board, the brand name his strengthened and this increases the economies of scale for lower costs, and drives more customers into the franchise outlets.

Nevertheless, there seems to be quite a bit of litigation going on in franchising, and no one wins except the lawyers with their extremely high fees. If you run a franchise company or if you are a franchisee you need to be thinking here otherwise you are just feeding the sharks with your own foot. Please consider all this.

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes in good business.

Note: All of Lance Winslow's articles are written by him, not by Automated Software, any Computer Program, or Artificially Intelligent Software. None of his articles are outsourced, PLR Content or written by ghost writers. Lance Winslow believes those who use these strategies lack integrity and mislead the reader. Indeed, those who use such cheating tools, crutches, and tricks of the trade may even be breaking the law by misleading the consumer and misrepresenting themselves in online marketing, which he finds completely unacceptable.

Article Source: http://EzineArticles.com/?expert=Lance_Winslow

Lance Winslow - EzineArticles Expert Author

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Article Submitted On: November 01, 2009



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