A wide range of businesses now operate on the basis of a franchise model. Whilst this is a proven and usually successful way of doing business, disputes do inevitably occur from time to time between franchisors and franchisees.
A franchisor may be unhappy with a franchisee who is not complying with the terms of the franchise agreement or it may be owed fees or royalties by the franchisee.
For its part, a franchisee may consider that the franchise model has not worked and that the franchisor misrepresented the likely profitability of the franchise or believe that the franchisor is not delivering all that it should under the provisions of the franchise agreement. It may also want to explore ways of ending the relationship.
At Weightmans, we have experience of advising on many of the issues that can occur between franchisors and franchisees and of helping to deal with the matters that can arise upon the ending of a franchise relationship. These can include helping to ensure that termination provisions are observed, that any sums owed by the parties are paid and that all relevant intellectual property rights are protected.
In those cases where an issue arises which cannot be settled amicably between franchisor and franchisee, we can advise on the options available for resolving the dispute, whether this be through contractual procedures expressly laid down in the franchise agreement, formal processes such as litigation or arbitration or one of the various options that exist for alternative dispute resolution, such as mediation.
We are happy to provide you with an initial assessment and recommend preliminary action on a fixed fee basis in order to provide you with certainty of cost.