A franchise is a unique business model that allows for the acquisition of an existing business’ brand, trademark, and product by a franchisee from a franchisor in exchange for a monetary payment, as well as (usually) a share of revenue or ongoing fee. In addition to being bound to an obligation to share a percentage of revenue with the franchisor, the franchisee is also legally obligated to abide by a franchise agreement.
A franchise agreement – which is signed by both the franchisee and the franchisor – is a legally binding document that allows for the franchisee to use the franchisor’s marks/systems/products while following certain operation policies specific to the parent company. Because a franchise agreement outlines how a franchise is to conduct business, dispute prevention and resolution may seem fairly simple. However, this is often not the case; when franchise disputes arise, our experienced South Florida franchise litigation attorneys are ready to help.
Common Franchise Disputes
There are a number of common franchise disputes which may result in the franchisor or the franchisee bringing forth litigation against the opposing party. These include, but are not limited to:
- Accusations of trademark infringement;
- Disclosure of trade secrets;
- Breach of contract;
- Employment or labor disputes;
- Failure to adhere to operational requirements;
- Failure to make required payments/share stipulated percentage of revenue; and
- Business marketing disputes.
In most cases, it is the franchisee who is in violation of a franchise agreement, and therefore the franchisor who brings forth the legal dispute. However, this is not always the case; there are instances when a franchise may violate a franchise agreement and infringe upon the rights of the franchisee.
How the Offices of Padula Bennardo Levine, LLP Can Help
Franchise disputes can be extremely complicated. At the offices of Padula Bennardo Levine, LLP, our talented Boca Raton franchise dispute attorneys have experience representing both franchisors and franchisees in high-value conflicts. We work with parties to solve disputes in the most effective, quick, and fair way, and prioritize alternative dispute resolution. In other words, while we recognize the fact that litigation in the courtroom can often achieve the desired effect, we believe that mediation and conversation out of the courtroom is often ideal. By resolving disputes out of the courtroom, conflicts are kept more confidential, money and time is saved, and reputations are often spared.
Contact Our Franchise Litigation Attorneys Today
Our attorneys have years’ worth of experience representing franchisors and franchisees. We realize that profits, reputation, and years’ worth of your hard work and time are all on the line when a dispute presents itself. To improve your chances of your dispute being resolved in your favor with your best interests in mind, call our law offices today or contact us online. Your initial consultation is free and confidential.