Franchise lawsuits involve disputes over territorial rights

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Reference no: EM131202091

Many franchise lawsuits involve disputes over territorial rights. On one hand, a valid contract that grants exclusive territorial rights to a franchisee deserves to be enforced, just as any contract does if the parties have voluntarily agreed to its terms. On the other hand, the Internet offers franchisors an inexpensive marketing vehicle, which, according to some, they should be able to utilize. If franchisors are prevented from any direct competition with their franchisees via the Web, franchisors may stop granting exclusive territorial rights to any of their franchisees - which, of course, could also be detrimental to franchisees. What is your opinion on this issue? Should a franchisor be able to market its goods on the Internet, even though customers in its franchisees' exclusive territories may purchase the goods directly from the Web site? Why or why not? The subject is legal environment of business.

Reference no: EM131202091

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