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Finding Balance in Franchise Agreements

BY Kevin Adler
May 30, 2013

“Any notion that granting a franchise is a privilege needs to be struck from the conversation. We are not commodities. We are partners, and a franchisor has the obligation to help us succeed,” stated multi-brand franchise operator Aziz Hashim during the opening panel discussion at the IFA's 46th Annual Legal Symposium in Washington, DC, in May.

This assessment came as Hashim and co-panelist Kenneth D. Walker, CFE, the past IFA Chairman of the Board and a former CEO of Driven Brands, Inc. (franchisor of Meineke Car Care Centers), reflected on today's hot-button issues in the franchisor-franchisee relationship. With moderator Joel Buckberg, of counsel with Baker, Donelson, Bearman, Caldwell & Berkowitz, PC, Hashim and Walker discussed everything from roadblocks for successful operators to sell their franchises, to proper use of advertising funds, to whether franchise executives should appear on the TV show “Undercover Boss.”

While Hashim and Walker represent, to some degree, opposite sides of the spectrum, they agreed on the bottom-line imperatives for the industry's future success: clarity and transparency in franchise contracts, fair handling of conflicts, and a sense of genuine partnership. “There's a misconception that only franchisors are stewards of the brand. It's not true; franchisees are very interested in the success of the brand and the [language of the] contract as well,” said Hashim.

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