What rights and responsibilities does a franchisor have?
In Ohio, a franchisor has certain rights and responsibilities. Generally, a franchisor has the right to establish conditions for a franchisee’s use of their mark or system. This includes the right to approve or reject a proposed location, to require the use of certain operational methods, and to control the quality of products and services. A franchisor also has the responsibility to provide support and materials to help the franchisee be successful. This could include training, marketing materials, and other resources. Additionally, the franchisor must abide by any laws related to the franchise, such as those prohibiting deceptive advertising. Finally, a franchisor must make sure their franchise relationship is fair and reasonable. This includes a duty of good faith and fair dealing, where the franchisor must acknowledge the franchisee’s interests. The franchisor must also disclose all relevant information regarding the franchise, such as any fees, costs, and other associated terms. The franchisor-franchisee relationship is governed by state contract and franchise laws. In Ohio, a franchisor must meet all of their rights and responsibilities in order to conduct business lawfully and maintain a successful relationship with their franchisee.
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