It is no secret there is an inherent imbalance of power in the franchise relationship between franchisors and franchisees. It is the reason franchise law exists in the first place â€” to address that exact issue and codify certain rights for franchisees and obligations for franchisors.
However, the fact that franchisors hold considerably more negotiating power doesnâ€™t have to be a bad thing. As Iâ€™ve expressed here before, franchising is all about consistency, and consistency can only come about when everybody adheres to the same standards. To that end, a franchise agreement is largely a list for franchisees of what they must do, what theyâ€™re not allowed to do and what the consequences are when they do or donâ€™t do one of those required things. Read on.