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Social Media: The Legal Implications on Franchise Systems

By Beata Krakus
February 28, 2012

Do you know what it means to get dooced? Is a social media troll ugly? What is crowdsourcing, the blogosphere, and UGC? It is clear by now that social media is not going to be a fad and that it will instead be a significant part of everyday life. (To end the suspense, to get “dooced” means to lose one's job because of statements made on a blog. A “troll” is a person who posts negative comments on a social media page to cause disruption and argument. “Crowdsourcing” means giving an assignment traditionally performed by employees or consultants to a large, generally unorganized group of people. “Blogosphere” is a reference to the collective blog community. “UGC” means user-generated content. See www.urbandictionary.com.)

Since most consumers today expect social media to be part of the online presence of the retailers and businesses that they frequent, franchisors have to figure out how it fits into their and their franchisees' businesses, and franchise lawyers have to figure out the legal implications of their clients' choices and actions. Social media usage can touch on many different legal issues affecting a franchise system. This article will not attempt to cover them all, but rather focus on general social media legal issues that may be new to franchisors, as well as critical franchise-specific legal issues.

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