October / November 2000

Franchising: Virtual ‘stores’ and internet encroachment

01 October 2000

The decision underscores the need for painstaking scrutiny (and review by legal counsel) of the terminology to be used on the website and in marketing materials and public filings. The ruling also emphasises the need for careful consideration (from both a business and legal perspective) as to how to offer to involve franchisees in alternative distribution arrangements without the offer subsequently being construed as an acknowledgment of the franchisees’ rights.