What are the legal obligations of a franchisor to its franchisees?

In California, franchisors have a legal obligation to provide certain protections and information to their franchisees. This includes providing a disclosure document that outlines all the details of the franchise agreement and includes information about the franchisor, the franchisee and the terms of the agreement. The document must be provided at least 14 days before any franchise agreement is entered into. The franchisor must also provide the franchisee with a copy of the agreement, a list of any other franchisees, and information about the franchise system and its financial performance. The franchisor must also provide adequate training, marketing and other support for the franchisee. This includes providing guidance on how to set up and run the franchised business, providing help with marketing, and providing access to any tools or resources the franchisor has. The franchisor cannot enter into any agreements with franchisees on behalf of other franchisees without the express permission of all parties involved. The franchisor must also act in good faith and fair dealing when dealing with franchisees. This means that the franchisor must act fairly and honestly towards the franchisee and provide the necessary support and resources to facilitate the success of the franchisee’s business. The franchisor must also provide timely, honest and accurate reports to the franchisee and keep the franchisee informed of any changes in their relationship.

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What are the legal obligations of a franchisor to its franchisees?

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