The world a franchising is quite an industry full of litigation. One of the favorites of franchisee attorneys in class-action lawsuits used to sue the franchisor for misuse of the promotional funds, which the franchisees have contributed to. There are a number of huge cases with large settlements, some of which have nearly bankrupted the franchisee company.

It is for this reason that I decided to upgrade the clauses in our franchisee agreement and the information on the promotional fund and its contributions in the confidential operations manual. Here below is a copy of the clauses that I inserted into my franchisee company