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  • Posted on 22nd Sep, 2022 17:31 PM
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Employment Law, business - Law And Order - Entrepreneur.com

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What does face as it approaches 2000?To find out, we asked those with their fingers on the pulse of theindustry: franchise attorneys Rochelle B. Spandorf, a partner withLos Angeles law firm Foley & Lardner, and Lewis G. Rudnick, apartner with franchise law firm Rudnick & Wolfe, whogave us the lowdown on the issues.

  • Web encroachment. When you begin retailing over theInternet, you may find yourself encroaching on someone else'sexclusive territory, says Spandorf. "[Franchisors] may need tohave franchisees who have exclusive territorial protection sign anamendment to their contracts," she says, "and it maycause some difficulty in franchise relationships."
  • New market encroachment. "A few cases have croppedup that raise questions about whether the franchisee has a claimfor bad faith when he or she feels a franchisor has put a new unittoo close to an existing unit or when it sells in anotherdistribution channel [such as supermarkets]," says Rudnick."The system expansion conflict issue will probably be resolvedby developing procedures to avoid conflict, rather than throughlitigation."

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