The advantages of a franchise are numerous, but the government has a small number of franchises that are limited to certain types of businesses. A franchise can be found in almost any industry, including government, but in the government, the number of franchises is significantly less than in other industries. Governments have limited franchises, but they are still an important part of the economy. Franchises in government are often better suited for government services than those in other industries.
Disadvantages of buying a franchise
There are some advantages and disadvantages to owning a franchise. For example, you can tap into the collective buying power of the franchisor. The franchisor has relationships with suppliers, which can enable you to buy goods at a lower cost. Additionally, you’ll have an easier time getting financing if you already have a relationship with the franchisor. Lastly, you can count on the franchisor’s support to help you succeed in business.
The benefits of owning a franchise outweigh the disadvantages. Government franchises are widely accepted and have a network of support. The downside is the lack of financial privacy. In many cases, franchisors control the franchisee’s financial ecology. Nonetheless, this lack of privacy can be easily overcome by adopting guidance. However, be warned: the downsides of government franchising are many.
Legal action for breach of contract
A franchisee who suffers from a breach of contract may take legal action against the franchisor. Depending on the circumstances, a franchisee may seek damages in breach of contract, rescission, or costs. It may also use the franchisee’s legal rights under state unfair trade practices law. Legal action for breach of contract is advantageous to franchisors in government because it allows them to protect their IP, trademarks, and other proprietary information.
However, the franchisor must take the action if there is no other appropriate remedy, and injunctions are only granted when the franchisee’s breach of contract causes irreparable harm to the franchisor. Injunctions are often “carve out” in arbitration agreements.
The federal government has several laws that protect franchise owners. The federal FTC is responsible for enforcing more than seventy federal consumer protection laws. The federal FTC Act contains a broad prohibition on unfair and deceptive business practices. Many states have enacted similar statutory schemes, known as “Little FTC Acts,” to protect consumers. Franchisees should familiarize themselves with these laws in order to avoid possible legal issues.
Duration of a franchise
The duration of a franchise in government is often regulated by the state or some other duly authorized body. The state exercises its police power by legislating to protect its citizens and this law also extends to local authorities and political subdivisions. Depending on the state, the duration of a franchise can be limited, extended, or revoked by the state legislature, grantee, or franchisee. In some cases, there are special procedures and requirements for the renegotiation of a franchise.
