Blake Lapthorn solicitors' Franchising
team has considerable expertise in dealing with disputes
that arise between franchisors and franchisees on both sides.
disputes with a franchisor
Unhappy franchisees soon find out that the costs involved in any
dispute outweigh the chances of success. Litigation can be hugely
expensive and the chances of success for the franchisee are very
slim.
It is almost impossible to recover a franchise
fee paid to a bad or fraudulent franchisor. Once a franchisee signs
up to a franchise agreement, they are usually committed to the full
term. If a franchisee walks away from the franchise, the
franchisor may try and claim damages equivalent to what they would
have expected to receive in monthly fees for the remainder of the
term.
Sometimes disputes arise between good franchisors and good
franchisees. We can help with mediation.
Usually, dissatisfied franchisees are only able to make
cost-effective use of our services if they wish to break out of the
relationship because the franchisor has mis-sold them the franchise
in the first place or has not provided the back-up that the
franchisee could reasonably expect. In these circumstances, there
are sometimes a number of dissatisfied franchisees who could club
together to purchase advice and assistance or, because an
individual franchisee’s business could operate without assistance
from the franchisor, it is worth them spending substantial sums on
engineering a break away. Our Franchising team has done
this successfully for a number of franchisees.
disputes with a franchisee
Should a franchisor find themselves in
dispute with a franchisee, our specialist team is able to
provide assistance with the
following:
- acting for franchisors in disputes with individual or groups of
franchisees
- alternative dispute
resolution (ADR), including the provision of mediation
and arbitration.
If, following an inital conversation with you we conclude that
there is something we can do we will require at least £500 plus VAT
on account of costs before starting work.
