This bulletin is intended for franchisors, executives and managers of franchise networks, and franchising consultants.

My October 24, 2018 post, entitled What is the True Contract Between a Franchisor and its Franchisees?, dealt with the unique nature of the legal and commercial agreement between a franchisor and its franchisees.

By its very nature, that agreement, which the courts now describe as a "relational contract", includes a mutual commitment to collaborate in which each party must play its role in such a way that the considerations behind the agreement are not voided or defeated by opportunistic actions on the part of either party (decisions made, or actions taken, in its sole interest without taking into account the interests of the other party). That commitment also (even if it is not set down in writing in the signed agreement) calls for maintaining a very high degree of good faith and mutual loyalty throughout the relationship.

Continue reading to learn more about organizing a Wise-Persons' Committee and the benefits it would bring to your franchise network.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.