http://www.tasteofphilly.biz/wp-content/uploads/TasteOfPhillySampleFranchiseAgre

Question

http://www.tasteofphilly.biz/wp-content/uploads/TasteOfPhillySampleFranchiseAgreement.pdf

http://www.freefranchisedocs.com/haagen-dazs-Franchise-Agreement.php

Compare and contrast the two Franchise Agreements (Taste of Philly and Haagen Dazs) with respect to the contractual termination provisions.

1. In general (not related to these two contracts) Why would a Franchisor not have a specific process and framework for terminating a Franchise? Is this a strategy or an oversight? Defend your position.

2. List 3 more specific reasons why a Franchise should be terminated - and why you believe these to be true. You may not use reasons cited in the agreements above.

Explanation / Answer

The Franchisor will not have a specific process and framework for terminating a Franchise, as it has been a strategy provided with following reasons:

1. The business is set to expand in the market, the franchisor in their own interest would have invested for the business develop, so that there is no any framework set for termination as that affect the overall name of the brand.

2. As per relationship law, the business plan is set to achieve the goal of the organization, so that terminating would impact on the loss of the business and so there is no specific process for terminating.

3. The franchisor would face financial issues as where only they should pay the amount to suppliers, banks etc. So that for business growth there is no framework set for termination.

2. The 3 more specific reasons for terminating the Franchise is given below:

1. Rules and Regulation: If the franchisee did not follow on the franchisor business rule, then the franchise needs to be terminated. Only ethics helps to sustain the business in the market.

2. Customers: If the customer face any issues, it would impact on the brand of the business. So the franchise should be terminated or it would affect the overall business.

3. Agreement: When there is no mutual understanding of the both, if the franchisee did not give profit on time, any issues with the franchisor then the Franchise should be terminated.

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