In the context of franchising, a judgment is a formal decision made by a court regarding a legal dispute involving the franchisor or a related party. Judgments can stem from lawsuits filed by or against the franchisor and may involve issues such as breach of contract, misrepresentation, or franchisee disputes. Any judgments must be disclosed in Item 3 of the Franchise Disclosure Document (FDD) if they are material to the franchise system. Prospective franchisees should carefully review this section to assess the legal history and risk profile of the franchisor.
Judgment
This term
A judgment is a legal decision that may impact a franchisor’s litigation history.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
