CHAPTER 6Compliance

The development of an in-house legal, quality control, and franchisor-franchisee relationship management compliance program and the designation of a compliance officer and support staff are necessities, not luxuries, for the growing and established franchisor operating in today’s litigious society. In many cases, the compliance staff will be pitted against the sales and marketing staff, an outgrowth of the inherent tension between the need to market and grow aggressively and the need to market and grow legally. The growing franchisor must foster an attitude and a philosophy of teamwork early on in order to avoid tension within the company. The franchisor must make a commitment from day one to award franchises within the bounds ...

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