Franchise Dispute
Reasons For A Franchise Dispute
A franchise dispute may arise because of several reasons and when it does you will want a legal team on your side that is familiar with franchise regulations, contracts, and your rights whether as franchisor or franchisee. The SNA team is experienced in franchise dispute handling and can assist.
Because franchise agreements constitute long term business relationships, disputes are inevitable. The resolution of such in a manner that will protect your rights, and where possible, the business relationship, is important. A franchise dispute can arise at any time during the relationship. Many such disputes occur upon termination of the agreement or because of challenges to the validity of the specific agreement.
The franchisor may sue a franchisee in order to collect money owed in terms of marketing and royalty. If a franchisee doesn’t operate the business according to the procedures set out in the agreement the franchisor can take legal steps. Such an instance can be when the franchisee doesn’t abide by the uniformity codes set out in the original agreement. The franchisee may also for instance, not provide the workers with the required training, may advertise other products or services at the premise or may not uphold the standard for service delivery required.
A dispute may arise at the termination of a franchise agreement regarding the usage of the franchise trademark. If the franchisee continues to use the trademark, the franchisor may have grounds to sue for infringement of intellectual property rights.
A franchisee on the other hand, may sue the franchisor for earnings not gained as projected because of wrong financial information and false information about past performances. The franchisee may also have grounds for a dispute if the franchisor doesn’t do the required overall marketing and doesn’t give the agreed support.
Whether you are the franchisor or franchisee caught up in a dispute or considering a franchise dispute, contact the SNA team for legal assistance today.

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