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Investigating the goodwill issue in franchising: An exploratory analysis
Journal article   Peer reviewed

Investigating the goodwill issue in franchising: An exploratory analysis

Maurice Roussety, Lorelle Frazer and Evan J Douglas
Australian Business Law Review, Vol.44(3), pp.158-174
2016
url
http://sites.thomsonreuters.com.au/journals/category/australian-business-law-review/View
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Abstract

Law Accounting, Auditing and Accountability
In this conceptual article, the authors explore the problematic issue of goodwill in franchisee-operated businesses in Australia which creates conflict between franchisors and franchisees in resale or exit events. This article addresses the paucity of research on this topic and establishes why goodwill generated in franchise businesses is different to that in independently operated businesses, and highlights the contractual triggers and regulatory motivations for the identification and valuation of goodwill generated by the franchisee.The article illuminates the salient issues and thereby provides guidance to existing and prospective franchisors when contemplating and structuring their franchise agreements, and suggests areas for further research to address this controversial issue.

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