18851 NE 29th Avenue
Suite 303
Aventura, FL 33180

Phone: 305-929-8500
Fax: 305-675-0564

1089 W. Morse Avenue
Suite D
Winter Park, FL 32789

Phone: 850-391-5060
Fax: 850-391-7705
400 N. Meridian St.
Tallahassee, FL 32303

Phone: 850-391-5060
Fax: 850-391-7705
Kurkin Forehand Brandes - COVID-19 Update

Franchisors may control some aspects of franchisees’ businesses

Down Arrow

You are here:

  1. Home
  2.  » 
  3. Automobile Dealer Law - Franchise Disputes
  4.  » Franchisors may control some aspects of franchisees’ businesses

Although opening a franchise business in Florida can be a lucrative and exciting investment, it can also be a difficult undertaking if the business owner is not aware of the control they may need to give up concerning the details of their franchise relationship. A franchise, regardless of its industry, may be set up in such a way that every business under the franchise looks the same, operates the same, and pays the same costs to the franchisor. It is important to understand some of the ways that franchisors may structure the operation of franchises, but our readers are reminded that different franchise relationships may vary.

A franchisee may be required to get approval for where the franchise will be located from their franchisor. Once site approval is granted, that franchisee may need to follow the instructions of their franchisor with regard to how their business will look. Certain colors, designs and other details may be required of franchisees when they open their businesses.

Additionally, franchisees may be limited in the scope of goods or services that they may provide to their customers. A car dealership franchisee, for example, may not be allowed to sell certain brands of vehicles under the terms of their franchise agreement. When it comes to actual sales, auto dealer franchisees may be required to use franchisor procedures for closing their deals.

Franchises are great business opportunities for individuals who wish to have the support of successful entities behind them. They do not, however, allow individual owners to exercise unlimited discretion over the operations and design of their businesses.