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Home  /  Business & Commercial Litigation  /  Franchise Disputes
Business & Commercial Litigation

Franchise Disputes

The agreement was written by their lawyers. That does not make all of it enforceable.

Where Franchise Disputes Come From

A franchise dispute is a disagreement between a franchisor and a franchisee over the franchise agreement (its terms, its performance, its termination, or what either party may do afterwards).

These disputes have a structural feature that shapes all of them: the agreement was drafted by the franchisor, presented as non-negotiable, and signed by someone buying a business rather than buying a contract. That asymmetry is normal and largely lawful, but it does not mean every provision is enforceable, that the franchisor has complied with its own obligations, or that a termination has been carried out properly.

Where Franchise Disputes Come From

What We Handle

Termination and non-renewal

Challenging or defending a termination, including whether notice and cure requirements were met.

Franchisor obligations

Where support, training, marketing spend, or territory commitments have not been delivered.

Encroachment

Where a franchisor places a new location or channel in a way that undermines an existing franchisee.

Fees and royalties

Disputes over calculation, marketing fund use, and required purchases from designated suppliers.

Disclosure claims

Where the representations made before signing do not match what was delivered.

Post-term restrictions

Non-competes and de-identification obligations after a franchise ends.

When to Call Us

  • When you receive a notice of default. The cure period is usually short and it starts immediately
  • Before you sign a franchise agreement or a renewal, which is the cheapest hour in this practice area
  • When a franchisor has approved a location that damages your territory
  • When you want to sell or transfer your franchise and consent is being withheld

If You Have Received a Notice of Default

Franchise agreements almost always require a notice of default and a period to cure before termination. Those periods are short (often measured in days) and they are applied strictly. A franchisee who spends the cure period negotiating informally with a field representative frequently arrives at the end of it having cured nothing.

Diary the deadline

From the date of the notice, calculated the way the agreement calculates it, which is not always the way you would.

Read what is actually alleged

Cure what is alleged, not what you assume is meant. Curing the wrong thing is the same as curing nothing.

Respond in writing

A phone conversation with a field consultant is not a record. What you cured and when needs to be documented.

Get the agreement reviewed

Whether the alleged default is actually a default under the contract is a question worth asking before you concede it.

Who does this work

Jordan W Gerheim

Jordan W Gerheim

Franchise disputes on both sides, alongside contract and commercial litigation and the business advisory work franchisees typically need.

Benjamin N. Kearns

Benjamin N. Kearns

Contract litigation and business disputes, including claims involving ongoing commercial relationships.

FAQ

Frequently Asked Questions

Can I negotiate a franchise agreement before signing?

Less than you would like, but more than you are told. Franchisors present agreements as standard and much of the core structure genuinely does not move, but territory definitions, personal guarantees, transfer provisions, and post-term restrictions are more often negotiable than a prospective franchisee assumes, particularly for a multi-unit commitment. An hour of review before signing is worth considerably more than a year of litigation afterwards.

The franchisor opened a location near mine. Do I have a claim?

It depends entirely on how your territory is defined and what protection, if any, the agreement grants. Some agreements grant exclusive territory; many grant far less than franchisees believe they bought. Encroachment claims can also arise from delivery, online ordering, and other channels that did not exist when the agreement was written.

They terminated me. Is that the end of it?

Not necessarily. Terminations can be challenged where the alleged default was not actually a default, where notice and cure requirements were not followed, or where the franchisor itself was in breach. Post-termination obligations (de-identification, non-competes, equipment) also need handling properly, because these disputes frequently continue after the franchise has ended.

Do you represent franchisors as well?

Yes, though our work leans toward franchisees. We take both sides depending on how the matter arrives, and we will tell you plainly if a conflict prevents us acting.

Read It Before You Sign It, or Before You Answer It

Book a Risk-Free Strategy Session and send us the franchise agreement or the default notice. We will have read it before we speak.

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