What rights do franchisees have during the term of the franchise agreement?

Franchisees in California are protected by state franchise laws and have certain rights during the duration of the franchise agreement. These rights include the right to be given a disclosure document detailing the terms of the franchise agreement, the right for franchisees to withhold payment for any franchise materials which are not of merchantable quality, the right to sue for breach of contract if the franchisor fails to provide promised services, the right to sell or transfer the franchise to another party, and the right to engage in advertising and promotional activities. Franchisees also have the right to receive detailed financial reports about the franchisor’s use of their money, and the right to be consulted if the franchisor wishes to introduce any new products or services. Franchisees also have the right to terminate the agreement in certain circumstances, such as if the franchisor has breached their contract, or if the franchisor has failed to comply with state or federal regulations. Finally, franchisees have the right to ensure that the terms of the franchise agreement remain fair and reasonable by adding clauses such as a termination clause, or a non-compete clause. These rights ensure that franchisees are protected and can receive a fair return on their investment.

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What rights do franchisees have during the term of the franchise agreement?

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