Like other contracts, automobile dealer franchise agreements are based on the foundational principles of contracts law. An offer is made, an acceptance is garnered and, in exchange, some consideration passes between the hands of the transacting parties. However, when it comes to franchising, additional terms about business operations and other pertinent matters may also be included therein.
Independent businesses exist all throughout Florida. These entities are unique and are generally stand-alone businesses that are run by individuals, partners, or groups. The owners may have multiple locations for their businesses, but as long as they own each individual business, their entities will not be considered franchises. That is because franchises have a very different business structure.
The relationship between a franchisor and franchisee is governed by an agreement between the parties. When Florida automobile dealers wish to open their own franchise, they may work with auto makers or other entities to set the parameters for what they may do and how they may sell vehicles under the franchisor's name. When disputes arise between the parties, the information contained in their agreement may be controlling.
Opening an automobile franchise is a major financial investment. It can tax the resources of the franchisee and may push them to their limits in order to achieve their goals of having their own automobile dealership. In Florida, individuals work hard to meet the stringent requirements of opening dealerships and abiding by the terms of their franchise agreements. Past posts on this blog have detailed these and other requirements that dealerships must meet in order to operate in the state.
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.