Franchising disclosure law for the protection of Philippine franchisees

• Main Author: Chaneco, Maria Cecilia V.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Franchises (Retail trade)—Law and legislation—Philippines; Disclosure of information—Philippines; Disclosure of information—Law and legislation—Philippines; Commercial Law
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6865
• Institution: De La Salle University

This study was conducted to determine the need for a franchising disclosure law whihc will protect the prospective franchisees. Results show that the franchises are experiencing problems in their franchises business. These problems relate to the force purchase that have to be made by the franchises and the competition they are having with other players. Such problems however are not caused by the manner of disclosure of information nor by the kind of information that are being disclosed to the franchises. Hence, the need for a franchising disclosure law was not established. Moreover, a determination of the information that were disclosed to the franchisees prior to the sale and information that the franchisees want to be disclosed, if they were stull a prospective franchise, were made. Then, a gap analysis was conduted to determine if there is a gap between the information disclosed and the information that the franchisees want to be disclosed. The findings of the study are that gaps exist as to information regarding the court case hisotry of the company, directorsm and officers and the bankcruptcy history of the company and certain individuals. Even with the presence of these gaps, the researcher concluded that the gaps are not substantial to establish the need for a franchising disclosure law.