Franchising's Sinister Side: Vanishing Ad Dollars

Stock quotes in this article: WMT , DPZ  

Franchisers may fear associations because of their similarity to unions, and lawyers often advise executives against too much franchisee involvement, Seldon says. Make it clear to the franchiser that communication and friendly suggestions are your only goals.

If all else fails, hire a recognized and objective industry expert to assess the situation. It's more difficult for a franchiser to ignore professional advice, says Seldon.

Generally, avoid the courts at all costs. Litigation may bring the whole company down or prove fruitless, as was the case in 1997, when antitrust claims brought by Domino's Pizza(DPZ Quote) franchisees were dismissed in court.

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