Senior Associate, Head of Franchising and Commercial Services
Franchisors Liability to Franchisees
In a franchise relationship, the franchisee buys the right to use the franchisor’s trademarks, reputation and marketing in selling a product.
Whether a franchisor can be held liable for actions of the franchisee depends on the level on control retained by the franchisor over the business.
These terms should be made clear from the start, so both parties are aware of their responsibilities and obligations to each other.
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