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What if there is a change in franchisor ownership - say mcdonald's buys burger king, or the franchisor collapses?
You'll need a lawyer as lots of problems arise. For example, in a merger, what happens to your protected territory, use of trademarks, and so forth? If the both companies market similar services or products, the franchisee might find himself suddenly competing with the "guy next door"-- sharing the same trade name, logo, banner, customer traffic, etc. In the event of the franchiser's bankruptcy, what happens about continued delivery of quality products, supplies, support, co-op advertising, etc.?
The franchise agreement may offer only limited protection in these events since such agreements generally do not contain language governing ownership changes (e.g., buyouts, mergers, acquisitions, takeovers) involving the franchiser or its bankruptcy.
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