A Franchise Agreement is a long term relationship and, as with any long term relationship, there can be bumps in the road where the parties don't see eye-to-eye. Benjamin Franklin famously said: "an ounce of prevention is worth a pound of cure" and this description is certainly fitting for a franchise relationship.
Some of the most common disputes arising in franchise relationships are:
Lack of Support - franchisees claiming that they don't receive any support from the franchisor and that the franchisor is not living up to their obligations under the Franchise Agreement.
Misrepresentation - where the franchisee claims that they were "miss-sold" the franchise opportunity.
Breach of Covenants - where a franchisee attempts to set up a competing business in breach of the restrictive covenants in the Franchise Agreement.
We advise franchisors on how to take steps to avoid disputes arising and, when a dispute can't be avoided, we help clients to take action to protect their brand and their franchise network.