Franchises And The Dangers Of Unauthorized Products
Law360, New York (July 2, 2015, 10:56 AM EDT) -- Few items will draw the ire of a franchiser more than its franchisees selling unauthorized products. The reason is simple: for franchisers of restaurant and retail concepts, their brands are strongly associated with their products, which they have spent countless hours and dollars perfecting. Customers walking into a Burger King in California expect to find the same burgers and fries that they would find in a Burger King in Alabama. And although it is imperative that the franchisees follow the franchiser's entire system of operation (including food preparation and cleanliness standards) in order to create the seamless quality customer experience that is the foundation of a good franchise system, a franchisee's sale of unauthorized products can be extremely problematic for several reasons....
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