Franchisees as Consumers: Benchmarks, Perspectives and by Jenny Buchan

By Jenny Buchan

Franchising is an more and more very important international company version, yet how good safe are franchisees –the those that function and make any franchise procedure particularly paintings? during this e-book, the writer explores the various diverse roles that franchisees play in glossy enterprise, and their value to the luck of each franchise association.

As good as delivering a finished review and research of the felony context of contemporary franchising relationships, and different measures taken to accommodate franchisee matters, the writer examines the “weak hyperlinks” in modern franchising – the components the place franchisees are not often correctly safe. regardless of all of the rhetoric, franchisees stay awkwardly accommodated in the legislations, and they're short of consciousness via superior patron safety, company governance, and enterprise insolvency/bankruptcy legislation.

Franchisees As shoppers examines why franchisees stay extra weak less than the legislations than staff and providers, and what should be performed approximately it.

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We see this pattern repeated in the holding company structure called Retail Zoo under which US private equity company Riverside has plans to ‘acquire a few leading brands … and create a portfolio of four or five different brands’7 including Boost Juice. 8 It may be bought by a venture capitalist or may list after franchisees sign on. Neither the future configuration of the corporate group surrounding the franchisor nor the direction in which the franchisor will develop can be apparent to its franchisees ex ante.

Through becoming franchisees, they gain standing in the community and earn an income which they may not have been able to do using the qualifications gained in their country of origin. au] 26 May 2012 2 Frazer, Weaven and Wright, Franchising Australia 2008, Griffith University, Question B6 on page 35. g. unemployed, parental duties). Forty three per cent had independent business experience immediately prior to becoming a franchisee. 3 Enquette Annuelle sur la Franchise, Résultats 2010 4 NatWest bfa United Kingdom, Franchise Survey (2006) 29 5 IFA 2011 Annual Report, 5 6 National Australia Bank ‘NAB’ Migrant News #8, 5 A Contracting Party 43 have been attracted to franchising as an opportunity to run their own businesses, which they lacked the confidence to do independently.

Of note, only one28 of the 53 Australian master franchisees had registered its interest as an authorised user 29 in the foreign franchisor’s trademarks. An authorised user may bring an action for infringement under section 26(1) (b) TMA and may grant others (franchisees) the right to use the mark under section 26(1) (f) TMA. The other 52 Australian master franchisees and in turn their individual unit franchisees relied solely on contractual rights. For a national master franchisee that is not an authorised user, the process of defending the trademarks is cumbersome.

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