As much as parties wish to avoid them, disputes and litigation sometimes happen in the franchising world. Here at AH2 Legal, we commonly see disputes within the franchise relationship where promises of success are often given and parties are left disappointed. Usually, franchise disputes relate to the pre-contractual stage where parties exchange information.
If the franchise business is not successful, the franchisee may wish to consider whether the business information and financial forecasts provided by the franchisor were accurate and not misleading. The parties should make sure that facts and figures are representative and contain the necessary risk and accuracy warnings.
During the lifetime of the franchise agreement, disputes often relate to the non-performance of certain obligations, such as:
The termination or non-renewal of the franchise agreement can also lead to disputes in certain situations such as:
We at AH2 Legal, strongly advise that franchise agreements be drafted properly and carefully in accordance with the parties’ wishes. A properly drafted franchise agreement goes a long way in preventing costly and unnecessary litigation. If the franchisee and franchisor relationship starts becoming problematic, parties should carefully document any breaches and act quickly to prevent the problem from escalating further.
When a dispute does arise in your franchise business – speedy and cost-efficient resolution is absolutely vital. We strongly advocate for a business-friendly and costs-saving solution to any conflict situation rather than wasting time and money in Court litigation. We understand the warning signs for franchise disputes and can help you with both prevention and resolution throughout your franchise life cycle. When litigation is unavoidable – we can provide early-stage advice on the prospects and costs of your dispute and help you develop your litigation strategy.
Call us now to discuss your franchising matters with one of our experienced lawyers.
