Common Contracts
1 similar Franchise Agreement contracts
Why a Franchisor Wants to be an ‘Owner’Franchise Agreement • March 31st, 2023
Most franchise agreements contain a provision stating that the parties are independent contractors, and that the franchisee is operating its business for its own account. Although there is no dispute that the franchisor owns the “franchise system”, ownership of the franchised business is always vested in the franchisee. However, in respect of expropriations, there is a benefit to a franchisor being deemed to be an “owner” for it to claim compensation. To the author’s knowledge, this is the first time that a court has addressed this issue.
