We have considerable experience dealing with franchise disputes. As we act for both franchisors and franchisees we are able to understand the key relevant commercial issues. In addition we have a good working relationship with expert franchise barristers.
The main issues which tend to come up are:-
- Misrepresentation: the franchisee is given key factual information prior to entering into the franchise by the franchisor, which was relied upon when deciding on whether to enter into the franchise agreement, and which turned out to be untrue. This can include the cost of supplies, projections, cash-flows and representations about other franchisees.
- Termination: where the franchisor wishes to terminate the agreement and is alleging that the franchisee has breached the agreement or the franchisee wants to see whether he can get out of the agreement.
- Restrictions on trading: whether restrictive covenants (restrictions on trading) are enforceable within an agreement and whether there are ways to get around these clauses.
- Non payment: where a franchisee decides not to pay its franchise fees.
Additionally, we advise franchisors on effective franchise management processes, dealing with unhappy or poorly performing franchisees in order to avoid litigation. We can act quickly to obtain orders from the court to deal with problematic franchisees or franchisees setting up in competition and in breach of restrictive covenants.
We aim to ensure that your business is protected and provide you with cost effective commercial solutions to suit your business needs.
We have experience of:-
- Obtaining emergency injunctive relief from the courts when a franchisor’s know how or other intellectual property is threatened.
- Advising franchisors and franchises on strategies to terminate franchise agreements, including drafting breach letters and notices.
- Dealing with all aspects of negotiation and dispute resolution, including mediation, in order to offer pragmatic and commercial solutions.
- Managing the exit of franchisees from a network.
For a fixed fee we will review your franchise agreement and related information such as side letters and emails and have a meeting whereby we will explain the relevant law and your options.