Franchising companies, which specialize as part of their market mix commercial and industrial national and international accounts to be serviced bought a Mobile basis must consider how to control those accounts. Conflicts can arise between franchisee's accounts especially when such accounts are slightly outside the franchisee's designated territories. It is for this reason that in our franchising company we address this issue prior to the formation of the new franchise by inserting a clause into the franchise agreement. Below is a copy of the clauses that I put into our franchise agreements;

3.27 National and International Accounts

If the franchisee has any National or International Account which have locations outside the Marketing Area, if any such locations is within the marketing area of another Franchisee of Franchisor, Franchisee shall offer such other Franchisee the right to service such account within such other Franchisee's marketing area on such terms as Franchisee may elect prior to offering such right to any other party.

3.28 Contracts with Customers

Franchisee may enter into contracts having such terms as Franchisee wishes to negotiate, provided, however, that any contract for the performance of any of the Services shall provide that, upon the expiratio

n of this Agreement or any termination of this Agreement by Franchisor in accordance with Section 6.1 or otherwise, either (i) for the termination thereof, or (ii) for the provisions of alternate services not involving the methods or products of Franchisor. In no event will Franchisor be liable for any damages to Franchisee or any customer of Franchisee due to either the violation of this Section

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For those companies, which franchise service businesses, which take care of commercial accounts this might be something to consider and you are well advised to discuss this with a franchising attorney to determine how best to address this issue in the actual franchise agreements. You should consider this in 2006.

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