According to reports, franchise businesses were responsible for adding more than 15,000 jobs during the month of September 2013.
In a move that will affect a number of franchise companies, yesterday California Governor Jerry Brown signed a new law that will require private home care agencies to become licensed in the State before providing service.
A franchisee who sued his franchisor for fraud learned the hard way why it’s important to read the Franchise Disclosure Document, cover to cover, before buying a franchise. The California Court of Appeals ruled against him because the disclosure document Big O gave to the franchisee before he bought contradicted each and every one of his claims.
SB 610, which would add a statutory duty of good faith and fair dealing to the California Franchise Relationship Act, has been tabled for the year by the bill’s sponsor. It will be available for consideration by the Assembly Committee next year.
Last week I was interviewed on The Franchise Radio Network, a weekly podcast / radio show. On this show, we discussed ten of the key items that should be considered before buying a franchise. You can find the interview here.
A recent Wisconsin Court of Appeals case addresses the use of exculpatory clauses in franchise agreements, and determines that the clauses relied upon by the franchisor to avoid liability were both insufficiently specific and not conspicuous. As a result, the exculpatory clauses failed to protect the franchisor against fraud claims by the franchisee.