Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Franchisor-Supplier Relationships

By Rupert M. Barkoff
November 27, 2012

It appears that many franchisors have no formal long-term or, for that matter, short-term agreements with their suppliers. Is this an unhealthy move by these franchisors?

The most important relationship a franchisor can have is with its franchisees; the second most important relationship is with its suppliers. Well-drafted franchise agreements typically state that the franchisor has developed a system that includes a network of suppliers whose products or services are one of the key ingredients for making the franchise engine run.

All of us who have taken Contracts in law school know that you do not need a signed document to have an enforceable agreement, except in limited circumstances. When a neighborhood youth stops by and asks if he can cut your grass, you usually ask, “How much?” and perhaps, “When can you do it?” or “How often?” Once these terms are agreed to, a contract exists. You do not whip out a five-page document setting forth detailed provisions talking about what law governs, what will be the standard of care the kid will use, confirm that he has insurance, or ask him to make various representations about his legal status. At most, you might have a one-page document saying what he will do, when he will do it, and how much he will charge.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models Image

Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.

Hyperlinked Documents: The Latest e-Discovery Challenge Image

As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.

Identifying Your Practice's Differentiator Image

How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.

Risks and Ad Fraud Protection In Digital Advertising Image

The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.

Turning Business Development Plans Into Reality Image

This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.