Relational Contracts The New Generation of Franchise Agreements |
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| Author:
| Frydlinger, David
Vitasek, Kate
Gagnon, Jean |
| ISBN: | 978-1-959858-08-9 |
| Publication Date: | Mar 2020 |
| Publisher: | University of Tennessee at Knoxville, Center for Executive Education
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| Book Format: | Digital online |
| List Price: | Contact Supplier contact
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Book Description:
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The vast majority of written franchise agreements can be described as 'transactional' contracts. The typical franchise agreement sets out at great length the parties' rights (mostly the franchisor's rights) and obligations (mostly the franchisee's obligations). But is this the way it should be?This paper argues that the franchise industry should seek a new standard, one the authors refer to as a formal relational contract. Why? The very nature of the close legal and business...
More DescriptionThe vast majority of written franchise agreements can be described as 'transactional' contracts. The typical franchise agreement sets out at great length the parties' rights (mostly the franchisor's rights) and obligations (mostly the franchisee's obligations). But is this the way it should be?This paper argues that the franchise industry should seek a new standard, one the authors refer to as a formal relational contract. Why? The very nature of the close legal and business relationship between a franchisor and a franchisee embodies far more than the actual wording of their written franchise agreement. The purpose of this paper is to bring practical insights and understanding into the why, what, how, and when of using a formal relational contract for franchising.