Abstract
Many franchising disputes concern franchise selection and retention, including franchisors' allegedly discriminatory behavior against minority franchisees and franchise applicants. The author examines case law and business practices. He collects and considers some statistics on minority representation in two heavily franchised industries (fast-food restaurants and auto dealerships), and he analyzes the effectiveness vel non of some franchisors' minority recruitment and retention programs.
The author offers proposals that account for the judicial trend against affirmative action. He recommends extraordinary disclosures to prospective, high risk franchisees and argues the need for private systems to counter the redlining of franchises and poor servicing of redlined communities. These franchisor-implemented systems would better assist high risk franchises: those owned by poorer franchisees or located in markets or communities where businesses face higher costs and lower rates of return.
How to Cite
40 Ariz. L. Rev. 511 (1998)
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