Franchise Dispute Solicitors

Ashtons Legal is recognised nationally for its expertise in assisting clients with the smooth running of their franchise business and through our proactive advice, serious disagreements  are rare. Unfortunately, all business relationships experience bumps in the road and franchisor/franchisee relationships are not immune from this.

Our team at Ashtons Legal has a wealth of experience in providing early expert input to minimise damage to your franchise business. What might seem like a minor issue, if not dealt with, can easily develop into a full-blown dispute that may cause disruption to the management of your business and can be more costly in the longer term.

There are times when you must act quickly and robustly to protect your network and business. It is not uncommon for a franchisee to decide to “go it alone” having had the advantage of support , advice and the benefit of a successful franchise model.

We are regularly instructed by franchisors who wish to act to protect both their interests and those of their network in those circumstances. We work quickly to obtain injunctive relief and damages to ensure the minimum of disruption and maximum protection for your business.

We can also provide diagnostic and risk management advice at all stages of your franchise network, whether that is taking on a new franchisee, managing the termination of franchisees, performance management or setting up a new network.

We work as a single franchising team to ensure that your advice is seamless, commercially focused and responsive to your specific needs.

Our franchise dispute solicitors can assist with matters including:

• Breach of a franchise agreement
• Non-payment of franchise fees
• How to get out of a franchise agreement
• Brand damage by a franchisee
• Breach of a confidentiality agreement
• Misuse of intellectual property
• Misrepresentation of a franchise opportunity
• Franchise conflict resolution

Contact our Franchise Dispute Solicitors

Please get in touch for expert support from our  franchise disputes solicitors in Bury St Edmunds, Cambridge, Diss, Ipswich, Leeds and Norwich. We are ready to offer tailored assistance whether you’re local to our offices or based elsewhere in the country

Alternatively, please fill in our online enquiry form and a member of our team will be in touch shortly.

Our Franchise Disputes Expertise

Breach of a franchise agreement

Our franchise dispute lawyers  will interpret the terms of your franchise agreement and advise on whether a breach may have occurred. We can then advise on the most appropriate options and support you in taking swift action to protect your position.

Non-payment of franchise fees

Where it is alleged that a franchisee is not paying the agreed fees, we can assist with securing a sensible resolution. Our team act for franchisors in recovering unpaid franchise fees, as well as being able to support franchisees who feel they have a valid reason for non-payment.

How to get out of a franchise agreement

When a franchisor or franchisee wishes to terminate a franchise agreement, then they must have reasonable grounds for doing so. In general, they will need to rely on the terms of the franchise agreement to find grounds for ending the franchisor-franchisee relationship, but where there are no such grounds, a voluntarily negotiated termination of the agreement may be possible.

Our team can advise on whether there are contractual grounds for a termination and, where this applies, assist with facilitating the end of the agreement. Where there are no contractual grounds, then we can negotiate on your behalf to find a suitable resolution.

Brand damage by a franchisee

A key concern for anyone franchising their business is that franchisees could harm the integrity of the brand. For example, a franchisee might not maintain quality standards, giving a negative perception of the brand as a whole, or they might take other actions, such as creating negative publicity through social media activity. Whatever the case, the franchisor will want to act quickly to limit the damage cause.

Our franchise disputes lawyers can advise franchisors on their options to deal with brand damage by a franchisee. We can also support franchisees who have been accused of damaging the parent brand.

Breach of a confidentiality agreement

Confidentiality clauses are a key feature of franchise agreements and can often be a source of conflict. Where a franchisor believes a franchisee has breached a confidentiality agreement, they will need to act to prevent further breaches, minimise any losses and protect their commercial position.

We can advise both franchisors and franchisees on alleged breaches of confidentiality agreements, finding effective solutions to resolve the immediate situation and prevent future problems.

Misuse of intellectual property

Franchisees will normally be using various forms of intellectual property from the franchisor, including their brand name, logo and, potentially, key trade secrets. Where there is the suggestion that the franchisee has misused any of the franchisor’s intellectual property, then the consequences can be very serious.

Our experts can advise both franchisees and franchisors on whether intellectual property may have been misused. If an issue is uncovered, then we can work with both sides to agree an amicable resolution or assist with court proceedings where required.

Misrepresentation of a franchise opportunity

Sometimes, a franchisee may feel that the opportunity they were offered does not match up to the reality of their situation once they start operating a franchise. In such situations, there may be a case for a claim that the franchisor misrepresented the opportunity.

Such claims can be complex, so it is important to seek expert advice early. Our franchise dispute lawyers can help either side to review the situation and come to a pragmatic conclusion.

Franchise conflict resolution

Resolving franchise disputes is a key aspect of our skillset. We can assist with non-confrontational methods, such as franchise dispute mediation, as well as franchise litigation in court.

Our expertise includes both straightforward franchise agreement disputes, as well as more complex franchise litigation. As such, we can provide tried-and-tested approaches to ensure your interests are protected and that you achieve the best available outcome for your circumstances in the best way possible.

Frequently Asked Questions About Franchise Disputes

How does franchise dispute resolution work?

When dealing with a franchise dispute, being able to find a workable resolution as quickly and cost-effectively as possible is generally desirable. As such, franchise agreements typically contain provisions for a franchise dispute resolution procedure to be used if a disagreement arises.

Typically, the franchise agreement will specify that the parties must use alternative dispute resolution processes such as mediation or arbitration before taking a dispute to court. In most cases, these methods can allow a suitable outcome to be agreed amicably in private while keeping the costs and time involved to a minimum.

If an amicable resolution cannot be agreed, then it may be necessary to initiate court proceedings. However, even where this is the case, a settlement can often still be agreed before a hearing date is reached.

Under what conditions can the franchisor terminate the franchise agreement?

The exact conditions under which a franchisor can terminate a franchise agreement will depend on the situation. What these conditions would be for a specific franchise agreement should be stated in the agreement.

Typically, situations where a franchisor may have the right to terminate a franchise agreement might include where the franchisee:

• Fails to meet performance targets outlined in the franchise agreement
• Does not uphold required quality standards
• Breaches another contractual obligation e.g. paying the agreed fees
• Becomes insolvent

A franchisor should always seek expert legal advice before attempting to terminate a franchise agreement to ensure they are in full compliance with the terms of the agreement and any other relevant contracts or laws.

Contact our Franchise Dispute Lawyers

For expert support, please get in touch with our franchise dispute solicitors in Bury St Edmunds, Cambridge,  Ipswich, Leeds and Norwich. We are ready to offer tailored assistance whether you’re local to our offices or based elsewhere in the country.

Alternatively, please fill in our online enquiry form and a member of our team will be in touch shortly.