What Happens When the Actions of a Franchisor Harm the Brand and Hurt the Franchisees?

A Video FAQ with Mark A. Williams.

The actions of the franchisor are going to be governed by a couple of things. First is the contract, so you need to look at your franchise agreement and see what responsibilities the franchisor really has to you. Second, if they are violating their responsibilities there are some overriding laws that apply to protect the franchisee. One of the questions that comes up is whether they are taking action to hurt you as the franchisee or are they taking action to hurt the entire franchise system and that is a pretty important distinction that you have to think about.

So, first off, consult your franchise agreement and if there is something in there that the franchisor is not doing, then you have a pretty clear claim to go to court and seek action against them. If it something beyond that, it is a fairly complicated system and you probably need to seek further legal guidance.

© 2014 Parsonage Vandenack Williams LLC

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