tailieunhanh - Franchising and Licensing Two Powerful Ways to Grow Your Business in Any Economy_7

Tham khảo tài liệu 'franchising and licensing two powerful ways to grow your business in any economy_7', tài chính - ngân hàng, tài chính doanh nghiệp phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 168 FRANCHISING AS A GROWTH STRATEGY quires another franchise system. When this occurs franchisees usually claim that the franchisor has breached its agreement with the franchisee or where the contract language is ambiguous or absent that the franchisor has failed to fulfill a duty of good faith and fair dealing that it owes to the franchisee. Typically if the franchise agreement prohibits the franchisor from operating a competing business under the same name as that licensed under the contract operation of a competing business under a different name will not be considered a breach of the contract. See . John Keenan Company Inc. dba Norrell Temporary Services v. Norrell Corporation fka Norrell Services Inc. and Interim Services Inc. Bus. Fran. Guide CCH 12 148 . 2001 hereinafter Norrell . At least one case however has held that a franchisor may violate a franchise agreement by operating a competing business under a competing name despite the language of the franchise agreement. See Re Max of Georgia V. Real Estate Group of Peachtree 412 S 543 Ga. App. 1991 . In that case however the court found that although the infringing office did not operate under the Re Max name it used the same operating system and was a de facto Re Max office. To avoid this result franchisors should ensure that their franchise agreements affirmatively grant them the right to operate or franchise a competing business under a different name and to avoid the de facto franchise argument the two competing systems should operate separately with different systems and support staff and should not share their competitive business information. An alternative theory used by a franchisee that feels he is harmed by the franchisor s conduct may be invoked even where the contract does not afford any territorial protection. Essentially that theory suggests that the operation of a competing business under any name that negatively impacts an existing franchisee violates the covenant of good .

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