What are the legal requirements and obligations of franchisees?
In Florida, franchisees must abide by the requirements set forth in the state’s franchise law, which is codified at Fla. Stat. Ann. § 559.80. Franchisees are responsible for informing the Florida Department of Revenue when they enter into a franchise agreement and must provide a copy of the agreement to the state. Franchisees must also maintain accurate books and records, adhere to all terms and conditions of the franchise agreement, and pay the franchisor all fees and royalties due in a timely manner. Franchisees must also follow all laws, regulations, and standards of conduct established by the franchisor. This includes following the franchisor’s policies and procedures relating to the quality of products and services offered, complying with the franchisor’s marketing and advertising guidelines, and abiding by the franchise’s pricing policies. Franchisees must also protect their franchisor’s trademarks and refrain from using deceptive or false advertising to promote their business. Furthermore, franchisees must maintain the standard of quality established in the franchise agreement and remain loyal to the franchisor. In the event of a dispute, franchisees must first try to resolve the issue with the franchisor in good faith. If resolution is not reached, they can seek legal help in the form of arbitration or mediation. In addition, franchisees have the right to terminate the agreement in certain circumstances, such as when the franchisor fails to perform under the terms of the agreement.
Related FAQs
What is the procedure for establishing a franchise business?What criteria must be met to successfully register a franchise?
What are the legal implications of establishing a franchise?
What information must be disclosed to potential franchisees?
What are the restrictions on franchise activities?
How do you go about finding a franchisor?
How do you manage a franchise system?
How do you go about selecting a franchise consultant?
What are the legal implications of transferring a franchise?
What is the procedure for terminating a franchise agreement?
Related Blog Posts
A Beginner's Guide to Understanding Franchise Law - July 31, 2023What Do I Need to Know About Franchise Law Before Starting a Franchise? - August 7, 2023
What Are the Benefits of Consulting a Franchise Lawyer? - August 14, 2023
Common Misconceptions About Franchise Law - August 21, 2023
How to Develop a Solid Franchise Contract - August 28, 2023