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In his recent post on Lawrences’ blog, franchise lawyer Louis Vouloukos outlines the risks involved in providing disclosure and granting a franchise before selecting a franchise location. Many franchisors provide a disclosure document and subsequently grant a franchise to a prospective franchisee before the franchise location is even selected. A franchisor may be loath to undertake the risks and associated costs of securing a location and entering into a head lease before having a franchisee bound to that location. This blog post outlines how a recent court decision has made this common business practice extremely risky.
Read the full blog post here.