Franchisors must have a strategic plan to extend their brand image. In doing this they must also be careful that individual franchisee's websites do not conflict with the message that the franchisee company wishes to convey to its customers. All too often a franchisee will set up the website and all that website will have information that is contrary to the image that the franchisor or wishes to promote it all regions and markets. This can be bad and dilute the franchisors brand-name, marketing efforts and future plans for expansion. It is for this reason that I was one of the first franchisors to establish a specific clause in the franchisee agreement to address this issue. Of course this was back in 1996, however this updated 2001 addition clause may give you some idea, as to what I was trying to accomplish with regards to Internet sales and extension of brand-name back then; 3.16.2 Website Franchisee specifically acknowledges and agrees that any Website (as defined below) shall be deemed advertising under this Agreement and will be subject to among other things) Franchisors approval under this Section 3.16.2. (As used in this Agreement, the term Website means an interactive electronic document, contained in a network of computers linked by communications software, that Franchisee operates or authorizes others to operate and that refers to the Franchised Business, Proprietary Marks, Franchisor and/or the System. The term Website includes, but is not limited to, Internet and World Wide Web home pages.) In connection to any Website, Franchisee agrees to the following: (a) Before establishing the Website, Franchisee shall submit to Franchisor a sample of the Website format and information in the form and manner Franchisor may reasonably require. (b) Franchisee shall not establish or use the Website without Franchisors prior written approval. (c) In addition to any other applicable requirements, Franchisee shall comply with Franchisors standards and specifications for Websites as prescribed by Franchisor from time to time in the Confidential Operations Manual or otherwise in writing or on the Franchisee Forum intranet system. If required by Franchisor, Franchisee shall establish its Website as part of Franchsiors Website and/or establish electronic links to Franchisors Website. (d) If Franchisee proposes any material revision to the Website or any of the information contained in the Website, Franchisee shall submit each such revision to Franchisor for Franchisors prior written approval. (e) Franchisee shall use only approved key words, meta tags and titles pertaining to our industry. Franchisor will e-mail or respond via facsimile approved key words, meta tags and titles upon Franchisees request by e-mail or facsimile. (f) An electronic link to Franchisors Website shall be established and Franchisor will provide a reciprocal electronic link to Franchisees Website five (5) business days after approval or launching of Franchisees Website. (g) Franchisee may only offer approved products or services on Franchisees Website. Any Website changes made without Franchisors approval will put Franchisee in default of this Franchise Agreement. --- --- --- --- --- --- Today nearly all franchisors to address this issue in at least their confidential operations manual. I would recommend that you contact your franchise attorney and determined if it makes sense for your franchise in company to include such a clause in your franchise agreements. Consider this in 2006. |
