"What does a "Satisfactory Judgment" mean for a Franchisee?"

[King bell]

Signing a franchise agreement can be a scary step for anyone . You're going into business and trusting someone with your success or failure . But before you sign the dotted line, it's important to understand what you're getting into and what this "Satisfactory Judgment" clause means. A satisfactory judgment is a court ruling that doesn't go against the franchise rights granted by the franchise agreement . In other words , if a franchisee sues a franchisor for something that violates the franchise agreement , the court can rule against them and then force them to pay all associated costs (attorneys fees, etc) but they are not allowed to change the franchise agreement itself .

Most likely you will never see this clause enforced on you personally as an individual . However, it may keep you from suing your franchisor if there is a problem with your business or products .