The franchise relationship is defined by the contract between the franchisor and the franchisee. The franchise contract specifies the terms and conditions of the franchise and spells out the rights and duties of the franchisor and the franchisee.
If either party fails to perform its contractual duties, that party may be subject to a lawsuit for breach of contract. If a fran-chisee is induced to enter into a franchise contract by the franchisor's fraudulent misrepresentation, the franchisor may be liable for damages. Generally, statutes and the case law governing franchising tend to emphasize the importance of good faith and fair dealing in franchise relationships.
Answer:
The Franchise Contract
Explanation:
The franchise contract is contract between the franchisor and the franchisee. It defines the terms and conditions as well as the rights and duties of both parties in the contract. Each party will be liable for damages if there is a breach of contract stemming from breach of duty or rights or terms of the contract. There are statutes and laws that govern franchising in most countries ensuring fair franchise contractual relationships
