In this two-part series, we examine the law governing a franchisor’s ability to effectuate broadscale changes to its network. In part one, we examined systemic changes—new products, new services and new uniform pricing protocols among them. In this second part, we examine franchise network change triggered by an acquisition of the franchisor.
The acquisition of a franchised network—whether by a competitor (a “strategic” buyer) or a private equity concern (a “financial” buyer)—is often followed by significant modifications to that network.
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