Trusted Legal Guidance for Franchise Owners
Franchises are businesses that allow a business owner, the franchisee, to set up additional locations of a business that is already established. They can do this by purchasing the franchise from the franchisor, the owner of the established business. Due to the nature of franchised businesses, they typically have fewer disputes than other types of businesses, such as partnerships. Still, disputes are almost inevitable in any type of business, including franchises. Below, our Miami franchise disputes lawyer outlines some of the most common that arise and how to resolve them.
Breach of Contract
A breach of contract in a franchise typically occurs when either the franchisor or franchisee violates the terms of the franchise agreement. A franchise agreement outlines all matters pertaining to the franchise business including but not limited to:
- Operations
- Trademarks and license issues
- Marketing
- Training
- Hiring
Franchise agreements cover a wide variety of terms and they are also quite complex. Due to this, breach of contract disputes are quite common in franchise businesses. In some instances, franchisees may fail to participate in certain marketing campaigns or implement changes deemed mandatory by the franchisor.
Resisting Demands of the Franchisor
Another common source of disputes is when franchisees resist the demands of the franchisor. Franchises are very beneficial for franchisees because these business models allow them to reduce the stress, energy, and costs associated with creating a successful company. In exchange, however, the franchisee relinquishes some freedom regarding how the business is run. The specific aspects of these disputes will depend on the terms of the franchise agreement but often franchisees resist some of the demands made by franchisors.
Using Intellectual Property in an Unauthorized Manner
When franchisees buy into a franchise business, they have the right to use certain intellectual property in order to benefit the business. This intellectual property includes logos, brand images, slogans, and other identifying features. When intellectual property is not used in an authorized manner, it can result in a franchise dispute. If intellectual property is used in an unauthorized manner repeatedly, it can result in the franchise business dissolving.
Lack of Franchisor Support
Just as with other business relationships, the one between franchisors and franchisees goes both ways. Both sides have certain obligations, as well as certain rights. Franchisees are expected to cooperate with the requests of the franchisor, but franchisors are also expected to provide a certain level of support. For example, franchisors should provide support in the areas of business operations, hiring, training, and marketing. When franchisors do not provide enough support, it can result in a dispute and even cause significant harm to the business.
Call Our Franchise Dispute Lawyer in Miami Now
At Jimenez Mazzitelli Mordes, our Miami franchise dispute lawyer has seen the harm caused by the above conflicts and is committed to helping all parties avoid it. Our experienced attorney can advise on the number of ways to resolve your dispute and guide you through the process so you obtain the best outcome possible. Call us now at 305-548-8750 or contact us online to schedule a consultation and to get the legal advice you need.
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