Beware of the Boilerplate Introduction

But beware: Although these statements are not intended by the franchisor to have any binding legal consequences, a franchisee may seize upon this language if his or her business is less successful than he or she had hoped, or if a conflict develops between the parties. More than one franchisee has asked a court or an arbitrator to rule that, by including such statements in the prefatory paragraphs of its franchise agreement, the franchisor has created an enforceable legal obligation to ensure the overall success of the franchisee's business.

In a recent arbitration between a large national franchisor and one of its former franchisees, the franchisee complained that, among other things, its business was not as successful as it had expected. The franchisee attempted to use the introductory statements in the parties' franchise agreements, that the franchisor had “perfected” its system, to heighten the franchisor's obligations under other sections of the franchise agreements. The franchisee even presented a witness during the arbitration who testified that, in his expert opinion, the franchisor's inclusion of such language in the introductory paragraphs of its franchise agreements created an affirmative and enforceable obligation on the part of the franchisor to ensure that any of the discretionary services and assistance it rendered to the franchisee under other sections of the franchise agreements were effective and ultimately successful.