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FRANCHISE LAW, FRANCHISE AGREEMENTS AND TIPS FOR FRANCHISORS
Franchise law is specialised because we have an Act called the ConsumerProtection Act (CPA) and an attorney who deals in franchising wouldneed to understand how the provisions of the CPA are applicable to thefranchise agreement and disclosure document (the franchise documents). Whenan attorney prepares a franchise agreement, it has to comply with the CPA. Inaddition, the CPA has regulations that set out the information that needs to beinserted in a franchise agreement. I am of the opinion that if a franchise agreement does not comply with theCPA, the franchisee may resile from the franchise agreement i.e., elect toterminate the franchise agreement. Your franchise agreement is a legal documentthat contains all the obligations of the franchisee and the franchisor, whichmust also reflect the costs that a franchisee is to incur in establishing thefranchised business. In other words, there must be no hidden costs.
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