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What does it mean to open a franchise?

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Owning one’s own business is a dream of many Florida residents. While some individuals have creative ideas that allow them to open their own independent shops and stores, others seek out opportunities to run their own franchises under the supervision of corporations. This post will briefly discuss what franchises are and how the corporate-franchisee relationship may operate. Questions regarding auto dealership franchises should be directed to attorneys who work in this unique field of the law.

When a person wishes to use the trademark or trade name of a company, they will likely be required to enter into a franchise agreement. For example, if an auto dealer desires to sell Ford vehicles as a Ford dealership then they will have to secure an agreement with the Ford Corporation to use the images, trademarks, and other proprietary information of the company.

When a company permits a franchise of its brand to open it will generally wish to safeguard its greater reputation by ensuring its new franchisee meets certain standard and operating expectations. It may mandate how the business should be operated, what expectations the franchise must meet to uphold the standards of the company, and other requirements. In other words, to use the company’s likeness and name, the franchise must take care to not tarnish it through their operations.

Running an auto dealership franchise can be a rewarding experience but can also be challenging when conflicts arise between franchisees and corporate offices. These conflicts can threaten the viability of franchises and the business operations of their owners. Legal assistance can help those dealing with franchise problems to better understand their rights and options.