Franchisors Warned To Get Their House In Order

Moneyweb.co.za:

The Consumer Protection Act (CPA) which came into effect on April 1 2011, imposes a number of obligations on franchisors to root out those who lure unsuspecting franchisees into dubious agreements.

The CPA applies to franchise agreements renewed or entered into after the implementation of the Act. Likonelo Magagula – a director with corporate and commercial law firm, Deneys Reitz Inc. looks at some of the new obligations.

* Liquidity

* Kickbacks

* Duty to account

* Transparency

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