Franchisee Websites and the Main Franchisor Website and Potential Conflicts

Franchisors must have a strategic plan to extend their brand image. In doing this they must also be careful that individual franchisee's websites do not conflict with the message that the franchisee company wishes to convey to its customers. All too often a franchisee will set up the website and all that website will have information that is contrary to the image that the franchisor or wishes to promote it all regions and markets. This can be bad and dilute the franchisors brand-name, marketing efforts and future plans for expansion.

It is for this reason that I was one of the first franchisors to establish a specific clause in the franchisee agreement to address this issue. Of course this was back in 1996, however this updated 2001 addition clause may give you some idea, as to what I was trying to accomplish with regards to Internet sales and extension of brand-name back then;

3.16.2 Website

Franchisee specifically acknowledges and agrees that any Website (as defined below) shall be deemed