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Q: My franchisor wants me to move into retail premises but I am happy running my business from home. I want to maintain a good working relationship but I’m worried my franchisor may penalise me for staying home-based. What should I do?

May 11 2007

It depends on what your franchise agreement sets out and whether or not you can be obliged to move into retail premises. Even if this is not set out, there may be other obligations in relation to increasing your revenue or maximising the business or meeting targets. The franchisor could argue that this means you have to expand to retail premises if the same targets can not be reached from home.

I suggest that you check your franchise agreement, and in any event discuss your concerns with your franchisor if you feel that you can still manage your business effectively from home.

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