With all the best will in the world, when a Franchise Agreement is entered into, the intention is for both parties to make money and work in harmony for a long term period. The harmonious relationship between franchisors and franchisees is vital for the success of a business.
However, disagreements can arise due to conflicting interests, leading to potential disputes or ill feeling between the two which can grow and manifest over time.
If things have reached a stage where you need advice and support then contact Asit Jansari – Solicitor to advise and assist you through the maze of issues that will come into play in these types of disputes.
The aim should be for costs to be minimised whilst maintaining a positive commercial relationship.
Common Causes of Franchise Disputes
Contractual breaches: Violations of the franchise agreement, such as non-payment of fees, failure to adhere to operational standards, operating outside of a defined territory.
Support issues: Disputes related to the level of support provided by the franchisor, including training, marketing, or technical assistance.
Intellectual property misuse: Unauthorised use of the franchisor's trademarks, logos, or proprietary information (data and information owned by the franchisor).
Fee disputes: Disagreements over the calculation or payment of franchise fees, royalties, or other financial obligations.
Resolving Franchise Disputes: A Strategic Approach
Open and Honest Communication: Establish open lines of communication with the franchisee or franchisor. Clearly articulate your concerns and actively listen to their perspective.
Internal Dispute Resolution: Attempt to resolve the dispute internally before resorting to external methods. Not only will this be cheaper, it will maintain the commercial relationship and allow both parties to build following resolution of the issue.
Alternative Dispute Resolution (ADR): Consider ADR options such as mediation or arbitration. These methods offer a more cost-effective and efficient way to resolve disputes without resorting to litigation.
Court action: If all other avenues have been exhausted, litigation may be necessary as a last resort. However, it is essential to weigh the potential costs, time, and damage to the business relationship before pursuing legal proceedings.
Key Considerations:
Documentation: Maintain detailed records of all communications, agreements, and actions related to the dispute. This documentation can be crucial in supporting your position.
Legal Advice: Seek legal assistance from Asit Jansari – Solicitor to understand your rights and obligations. A lawyer can provide expert guidance and represent your interests in negotiations or litigation.
If you do need assistance then please contact Asit Jansari by email or, if you prefer, you can telephone him on 07966 244498.