“The Good, the Bad, and the Ugly – Franchise Agreement and FDD Provisions” an article by J. Michael Dady

“The Good, the Bad, and the Ugly – Franchise Agreement and FDD Provisions” an article by J. Michael Dady

Michael Dady discusses Franchisee’s rights and limitations of the agreement.

 

1. The Duration of the Relationship

  • The Good: Consecutive, unlimited renewal terms, with renewal agreements that do not materially differ over time.
  • The Bad: Limited renewal rights, expressly allowing material, adverse changes to renewal agreements.
  • The Ugly: No renewal rights, with franchisor claiming the right to acquire the franchisee’s business at the end of the term for the fair market value of the hard assets… “

 

Read the full outline here: The Good the Bad and the Ugly-Franchise Agreement and FDD Provisions One Franchisee Lawyer’s Perspective