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You Have Started a Very Successful Restaurant Business,and Now Own

Question 108

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You have started a very successful restaurant business,and now own thirteen profitable restaurants.Besides good food,the decor and ambience of your restaurants give them a distinct competitive advantage over other restaurants.Customers have approached you about opening up additional restaurants in other states.You do not want to affiliate with partners,nor do you want to spend considerable time traveling.Your attorney has suggested franchising,and guarantees that a contract can be written which protects the trade name,service marks and other particulars of your business.Your only concern is potential liability,should a franchisee's customer become injured or sick at a franchise.What is your liability exposure as a franchisor,and what can you as a franchisor do to protect yourself?

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As a general rule,franchisors are not li...

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