Comments on: Promises, Promises — And It Seems Only The Franchisee Is Forced Into Making Them http://www.howtobuyafranchise.com/promises-promises-and-it-seems-only-the-franchisee-is-forced-into-making-them/ Free ideas, tips, tools and tutorials to help you evaluate and buy a franchise successfully. From Dr. John P. Hayes Wed, 19 May 2010 16:19:19 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Carol Cross http://www.howtobuyafranchise.com/promises-promises-and-it-seems-only-the-franchisee-is-forced-into-making-them/comment-page-1/#comment-870 Carol Cross Wed, 09 Sep 2009 21:28:51 +0000 http://www.howtobuyafranchise.com/?p=768#comment-870 Yes! Really hard to find a breach by the franchisor when things go wrong, and you are not thriving with your so called "proven" plan. Unfortunately, the FTC Rule governing disclosure that is supposed to protect franchisees actually enables the franchisor to sell the franchise without making any promises at all about profitability or success and only weak promises about the support you will get from the franchisor. The franchisee, of course, makes all kinds of promises in the standard and unilateral franchise agreement -- even the promise that he will pay "royalties" as liquidated damages if he fails and has to terminate early to cut losses and avoid bankruptcy. Expert help IS needed to negotiate the mine field. Yes! Really hard to find a breach by the franchisor when things go wrong, and you are not thriving with your so called “proven” plan.

Unfortunately, the FTC Rule governing disclosure that is supposed to protect franchisees actually enables the franchisor to sell the franchise without making any promises at all about profitability or success and only weak promises about the support you will get from the franchisor.

The franchisee, of course, makes all kinds of promises in the standard and unilateral franchise agreement — even the promise that he will pay “royalties” as liquidated damages if he fails and has to terminate early to cut losses and avoid bankruptcy.

Expert help IS needed to negotiate the mine field.

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