Dear Customer (name blocked for privacy),

If you have a franchise, then the methods of computing the amounts due to the franchise corporation would be based on the franchise agreements that were signed between the franchise company and the franchisee.

Your question asks if it is right for the franchise company (franchisor) to force franchisees to divide the money up a certain way, change name of business, and tell franchisees what they are supposed to pay the 4% amount on. Unfortunately, this matter involves the contracts (agreements) signed by you and can only be answered by a full review of the contract's terms and requirements.

Contract law is generally based on common law, not law that is based on statutes (written laws passed by either state or government leglisatures). That means, that instead of being able to look in a state or federal statute book to find out if something can be done is not likely possible. Instead, after (1) reading the contract to see if (a) the contract allows the franchisor to do this and (b) if the franchisee did agree to it by signing the contract, there are (3) any reasons surrounding the contract (meaning the words used to write the contract(s)) or the way the franchisor and franchisee acted or understood each other, along with (4) all past contract law cases decided in the state's courts, which will allow an argument that the franchisor cannot force franchisees to do this.

Because you say there are other franchisees who feel this is improper, it may be possible for you to contact an attorney who works with class actions suits who may be interested in taking on this case for all franchisees. If not, then you should have an attorney read and review the franchise agreements/contracts so that he/she can tell you if the contracts permit the franchisor to require this.