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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What State Has Jurisdiction in Disputes Between Franchisors and Franchisees?

A Video FAQ with Mark A. Williams.

When you get into a dispute between the franchisor and the franchisee the first place to look is the franchise agreement. I would say in almost every circumstance that franchisor has written that agreement to include what state you have to go to and whether or not you can go to court or you have to go to arbitration. What you want to do if you get into a dispute is to check out your franchise agreement and see what it says. If it doesn’t have any provision, then you have to look at the law of your state to determine whether or not the courts would apply the law of your state or the law of another state. There are a lot of factors to make that determination.

© 2014 Parsonage Vandenack Williams LLC

For more information, Contact Us