Contrary to the belief of many franchisors, legal issues are not usually the result of inconsiderate, selfish franchisees, although there are isolated instances of these. Most legal issues arise due to three actions or omissions on the part of the franchisor:
- Failure to provide complete disclosure of material facts to potential franchisees.
- Failure to recruit the right type of franchisees.
- Failure to provide ongoing support, communication and training.