Franchise Disputes

Franchise Disputes

Franchise Disputes

Franchise disputes arise where there is a disagreement between the franchisee, the person or company that has the right to operate a franchise business and the franchisor, the person or company who has the right to sell or grant the franchise rights to sell the goods or services.  Consequently, a franchise dispute can occur for a variety of reasons.  For example, as a result of a disagreement in terms of what a franchisee can or cannot do in terms of the business.  Similarly, a franchise dispute may also arise if one party has failed to comply with their obligations and as a result the other party has suffered loss.  Alternatively, a franchise dispute can arise where a misrepresentation occurs, which the franchisee relies upon.  For example, a misrepresentation as regards overheads or sale projections.

In addition, a franchise dispute may also arise due to the use of intellectual property rights.  For example, the use of logo’s, branding etc without permission or outside of the scope of what was permitted when entering into the franchise agreement. Furthermore, a franchise dispute can also occur upon termination of the franchise agreement, determining how the parties are to part company, or the enforcement of restrictive covenants.

How we can help when a franchise dispute arises?

Franchise disputes do often arise, usually because of the nature of the relationship between the parties involved. Consequently, when a dispute arises, a lot depends upon what the client ultimately wants to achieve.  As a result, at 43Legal we are conscious that disputes in whatever form can be distracting to the operation of the business and ultimately pose a risk to the stability and the long term well fair of the business.  As such, we work with clients to identify the best strategy in terms of trying to resolve the dispute and achieve the client’s ultimate objective.  However, we are aware that this is not always possible and sometimes litigation through the court is required.

Above all, we are aware of the uncertainty and cost involved in pursing litigation and often with franchise disputes, it is important for the parties involved to try and maintain some form of relationship when resolving the dispute. Similarly, we are very much aware that often litigation is not the best strategy.  We therefore work with clients in terms of considering and utilising other methods to try and resolve the dispute, in terms of a negotiated settlement otherwise known as ADR, Alternative Dispute Resolution including mediation.

Although, we accept that unfortunately it is not always possible to reach an amicable resolution and sometimes, the clients ultimate objective requires the commencement of Court proceedings.  Either way, at 43Legal we have the expertise to guide you through the process in the most cost effective and pragmatic way possible.

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