Franchises Are Regulated By A Franchise Agreement Quizlet

Franchising has been accepted by many entrepreneurs who want to run their own business. However, the characteristics of a franchising company are different from those of other start-ups in some crucial respects. Some businessmen have even gone so far as to characterize franchisees as glorious employees of the franchisee, the company that owns the franchisees` brand and business concept. Other observers believe that this description of the relationship is misleading and simplistic, but also acknowledge that there are many aspects of franchising that a potential small entrepreneur should be aware of before entering into such an agreement. Therefore, unless otherwise provided in the franchise agreement, franchisors must rely on the general principles of the contract (Civil Code, Article 415) or on the general principles of the unlawful act (Civil Code, Article 709).

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