After reading (1) Chapter 30’s discussion of “Franchises” and (2) this newspaper article about a lawsuit between Steak ‘n Shake franchisees and the franchisorPreview the document, answer the following questions:

1.  From the viewpoint of the franchisee, what are two advantages of franchising?  What are two disadvantages of franchising? 

2.  Do you believe that state laws which require that a franchisor have “good cause” to terminate a Franchise Agreement – even when the Franchise Agreement itself contains no such requirement – is a good idea or a bad idea?  Why?  Please explain your logic.