Surprise! You may be involved in a franchise relationship and not even know it.
If you entered into a franchise agreement, you'd know it, right? Not necessarily. In several recent cases, companies terminating distributor relationships were surprised to learn that the law considered them franchisors, subject to state franchise laws.
"Most people, including lawyers, think a franchise is McDonald's or Ramada Inn," says Edward Dunham, a partner in the New Haven, Connecticut, law office of Wiggin & Dana who specializes in franchises. But legislatures designed franchise laws to protect a wide range of small businesses that depend on their relationships with particular companies.
Continue reading this article -- and everything on Entrepreneur!
Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5!