By Jenny Buchan
Franchising is an more and more vital international company version, yet how good safe are franchisees –the those that function and make any franchise process quite paintings? during this booklet, the writer explores the various assorted roles that franchisees play in sleek company, and their value to the luck of each franchise association.
As good as supplying a accomplished evaluation and research of the criminal context of contemporary franchising relationships, and the various measures taken to accommodate franchisee issues, the writer examines the “weak hyperlinks” in modern franchising – the parts the place franchisees are hardly ever properly safe. regardless of the entire rhetoric, franchisees stay awkwardly accommodated in the legislations, and they're wanting consciousness via superior purchaser safeguard, company governance, and company insolvency/bankruptcy legislation.
Franchisees As shoppers examines why franchisees stay extra susceptible below the legislations than staff and providers, and what could be performed approximately it.
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Extra info for Franchisees as Consumers: Benchmarks, Perspectives and Consequences
Lessees may also register their interests. Registered interests take priority over unregistered interests if an issue arises such as the financial distress of the registered proprietor. If a party has a registrable interest 44 Draft Individual Unit Traveland Pty Ltd Franchise Agreement (undated) 14 For example, Real Property Act 1900 (NSW) s 42 states that the estate of the registered proprietor is paramount 46 Land may also be subject to restrictions at common law, for example, nuisance, right of support and rights reserved to the Crown such as mining rights 47 Similarly, in other states and territories, Land Titles Act 1925 (ACT), Land Title Act (NT) part 3, Real Property Act 1861 (Qld), Real Property Act 1886 (SA), Land Titles Act 1980 (TAS), Transfer of Land Act 1958 (Vic) and Transfer of Land Act 1874 (WA) 45 38 3 The Franchise Network: Legal Fabric of a Global Player but decides not to register, it may lodge a caveat on the title.
52 In the absence of a lease, the landlord or lessee may grant a licence to occupy to a franchisee. Property laws do not provide for a licensee to register its interest on the title to the premises. Nor can the licensee protect its interest by registering a caveat as a licence is a personal property interest, not an interest in real property. The fewest rights accrue to a mere occupier with no contract to define its rights. This is the situation depicted by Fig. 12. A prerequisite for protection under retail leasing legislation is that the franchisor’s occupancy situation falls under the legislation.
16 Copy of franchise agreement in author’s possession Relying on provisions in Parts 10 and 11 Trade Marks Act 1995 (Cth) 18 Bruce S. Schaeffer and Susan J. , Problematic Relations: Franchising and the law of Incomplete Contracts 1990, Stanford Law Review 42:927 at 949. This and related questions were tested and the results reported in Francine Lafontaine and Kathryn L. Shaw ‘The Dynamics of Franchise Contracting: Evidence from Panel Data’ The Journal of Political Economy, Vol. 107, No. , 1999), 1041–1080.
Franchisees as Consumers: Benchmarks, Perspectives and Consequences by Jenny Buchan