Helping you to resolve things swiftly and effectively
Often, a key issue in dispute between the franchisee and the franchisor can be which of them is responsible for the underperformance or failure of the franchise business. The franchisor, for example, may consider that the franchisee has failed to comply with the terms of the Franchise Agreement to the detriment of the franchisor’s brand as a whole. The franchisee, on the other hand, may consider that the franchisor has failed to provide the training or business support that was required under the Franchise Agreement.
There are many potential issues that could arise under the specific terms of a Franchise Agreement, but a situation that often arises is where a franchisor believes that an ex-franchisee has breached the post-termination restrictions in their Franchise Agreement, by setting up a new business in competition after having left the franchise network. In such case, prompt and decisive action may be required to enforce any applicable post-termination restrictive covenants.
Sometimes, a franchisee will consider that the franchisor misled them into signing the Franchise Agreement. In that scenario, the franchisee may potentially have a claim for misrepresentation against the franchisor if, for example, the financial projections provided by the franchisor during the pre-contractual negotiations, and which were relied on by the franchisee when entering into the Franchise Agreement, were not genuine or realistic.
Clients tell us how we deliver peace of mind.