The Modern Myth of the Vulnerable Franchisee: The Case for a More Balanced View of the Franchisor-Franchisee Relationship

When several factors converged in 1970 to burst a 15-year franchising bubble, claims of widespread franchisor abuse grabbed headlines. Congress, as well as state courts, responded with laws and regulations that resulted in greater protections for franchisees, including more comprehensive disclosure requirements.

Franchisees today have all of the information legislators and regulators found they needed to make informed decisions. Yet misconceptions continue to impact development of franchising case law in ways that do a disservice to franchisors, franchisees—and even the public welfare.

The following article traces the origin of two franchising "myths" and explains why they no longer apply in today's franchise environment. Read more…