The franchising legal specialists
Franchising a business commits both the Franchisor and the Franchisee into a long term commitment to one another with the purpose of achieving business success. However, the relationship between the Franchisor and the Franchisee is not immune to conflict.
Types of Franchise Disputes
Some of the more common areas of Franchise disputes are:
- The Franchisee believes there is a lack of support from the Franchisor.
- The Franchisor believes that the Franchisee is not following the system.
- The Franchisee believes he is not making the level of profit that the Franchisor had promised.
- The Franchisor believes that the Franchisee is underperforming.
In each of these situations, the Franchisor will have one opinion and the Franchisee will have another, and it is vital that the dispute is resolved adequately and ideally amicably, to ensure continued business success.
Some of the following are effective methods which can aid in preventing disputes arising, as well as in their resolution.
Helping to Avoid Disputes
The best way to avoid a dispute is to research the opportunity thoroughly before investing and making sure you understand what is being offered and the obligations on both parties under the Franchise Agreement. To guide you through this opportunity and associated obligations you should seek the advice of a solicitor with expertise in Franchising. With our long-established expertise in Franchising, we will be able to provide you with a report which explains the detail in the Franchise Agreement and lets you know if it contains anything unusual or unnecessarily onerous. We may also be able to suggest amendments or relaxations which would be fair and reasonable.
Helping to Resolve Disputes
If a dispute does occur it is important to resolve it quickly and as amicably as possible.
Serious breaches of the Franchise Agreement
Franchisors can often be considered heavy-handed in their approach to disputes and this is often with very good reason. The Franchisor not only must consider himself in a dispute but also the interest of other franchisees in the network. If one franchisee steps out of line and damages the brand, the Franchisor will want to stop this immediately to protect the interests of all the other franchise owners. Franchisors therefore often act quickly to involve solicitors and instruct them to terminate or seek termination of the Franchisee’s Agreement by serving notice.
Minor breaches of the Franchise Agreement
For minor breaches, the Franchisor will usually prefer that the breach be remedied within a time period, resulting in a swift resolution rather than resorting to litigation. It is therefore in both parties interests to consider alternative forms of dispute resolution, including mediation and, if necessary, arbitration.
Both of these processes can be very effective in reaching a positive outcome and the British Franchise Association have established mediation and arbitration schemes which can be used to assist in this process.
Established Franchising Support
With our many years of experience in Franchising, we have assisted in countless Franchise disputes. As such, we are able to advise both Franchisees and Franchisors in regard to disputes between parties, and advise on the best method for resolution.
We offer a free initial consultation to anyone seeking franchise legal advice. We are always competitively priced, pleased to discuss costs with you and, where appropriate, will endeavour to agree a fixed fee for our involvement. David Kaye is also a British Franchise Association (BFA) Accredited Lawyer.
We're Always Here to Help
Our team is top-ranked for Franchising in Chambers UK Guide to the Legal Profession 2018, with lead Partner David Kaye ranked as a Band 1 Leader in the Field.
Call us for free on 0330 159 5555 or complete our online form below for legal advice or to arrange a call back.
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