Franchisee will prominently indicate on its letterheads and business forms that Franchisee is a licensed Franchisee by using language saying that Franchisee operates an independently owned Franchise.
Franchisee will maintain employee records to show clearly that Franchisee and its employees are not employees of the Franchisor.
The liability of Franchisee?s shareholders, members or partners will be both joint and several. A breach of this Agreement by Franchisee or by any shareholder, member or partner will be a breach by all of the shareholders, members or partners and also by Franchisee.
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A franchisor must not only perfectly execute his strategy to extend brand name and market share thru its outlets, but it must also be careful to distance its self from unnecessary liability in a litigious industry. You of course will have to ask your own professional parasite [attorney] how your company will most likely deal with this. This is how we dealt with the problem. Consider all this in 2006.
Lance Winslow.
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