In this article, we examine the law governing a franchisor’s ability to effectuate broad-scale changes to its network.
A constant source of tension between mature franchisors and their franchisees is the periodic need to modify the network’s concept and system to keep up with (or ahead of) the competition; to incorporate new technologies; to respond to changed consumer demographics, ethnicities, preferences and trends; to introduce new products or services and delete from the system older products and services; to modify existing trademarks/service marks, or abandon them altogether in favor of new trademarks/service marks; to modify the exterior and interior design of the network’s units and the equipment utilized thereat; to establish new advertising platforms and campaigns; to require integration of new technologies; and, otherwise to keep the mature franchise network’s image, products and/or services fresh, competitive and responsive.
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