West Palm Beach Franchise Law Attorney
Pike & Lustig, LLP is a full-service business law and commercial litigation law firm serving West Palm Beach, Fort Lauderdale, Miami and surrounding communities in south Florida. We understand our clients’ business litigation needs in both State and Federal Courts, including providing advice and representation to franchisees and franchisors under Florida franchise law. Contact our West Palm Beach business franchise attorneys for more information.
Resolving Disputes Between Franchisees and Franchisors
Franchise and distribution agreements can create lucrative opportunities for developers of innovative businesses as well as entrepreneurs looking for a proven model within which to apply their business skills and ambition. However, disputes may arise which threaten the beneficial relationship for both parties. At Pike & Lustig, LLP, our experienced Florida business lawyers are instrumental in resolving franchise disputes without the client incurring exorbitant litigation costs. Rest assured, however, that we are prepared to litigate disputes which cannot be resolved amicably.
In today’s world of technology and Electronically Stored Information (“ESI Discovery”), we actively represent franchisors on technology-related issues, including e-commerce, cybersquatting, trademark and trade name dilution, as well as corporate and intellectual property matters in numerous industries, including: corporate business; automotive; publications; real estate businesses & financial brokerages; education and childcare facilities; and retail merchandising. We have experience litigating issues involving:
- Anticompetitive Restrictions on Owners or Employees;
- Contractual Waiver of Legal Rights;
- Good Faith and Fair Dealing;
- Restrictions on Transferability of Ownership;
- Territorial Encroachment;
- Breach of Franchise Agreements;
- Royalties; and
- Trademark and Copyrights Disputes.
Seek Experienced and Successful Business Franchise Attorneys for Your Florida Franchise Dispute
At Pike & Lustig, LLP, our West Palm Beach franchise attorneys have a combined sixteen years of legal practice working with some of Florida’s largest firms in all types of commercial matters. We know what a courtroom looks like and do not hesitate to take a case to trial when it is in our clients’ best interests to do so. We are proud trial lawyers seeking justice for you. If find yourself enmeshed in a franchise dispute in Palm Beach, Broward or Dade counties, contact our office to speak with an experienced and successful Florida franchise lawyer.
Top Reasons for Franchisor and Franchisee Disputes to Occur
According to the International Franchise Association, the franchise U.S. Gross Domestic Product (GDP) sector increased by 4.7 percent ($453 to $473 billion) from 2013 to 2014. Furthermore, there are roughly three quarters of a million franchise establishments in the U.S., according to the 2011 Franchise Business Economic Outlook. The steady increase in output by franchises shows the reliable success of their model. While franchises can be lucrative for both parties, the franchisor and franchisee, both parties have the same goal (profit) but very different approaches. The franchisor’s goal is to increase their market coverage and grow their company, while the franchisee seeks to directly increase their profit by latching onto an already successful model. Some of the following are top reasons that lead to disputes between franchisors and their franchisees.
Lack of Franchisor Support
In many cases, franchisees feel that the support they receive is less than what the agreed upon terms allowed. That support may have been steadier in the early months or years, and fizzled out with time, leaving the franchisee feeling forgotten or abandoned. Legal disputes can arise when the stress of the relationship brings the franchisee to bring up the legal documents both parties originally come to an agreement on, as viewpoints that were once in unison part.
Breach of Agreement
While franchisees may stray from their original agreement because they feel that it limits their creativity or decreases their profit, the franchisor may feel that the agreement is being breached altogether. The franchisor may want to establish a product that is reliable and well known for its consistency, with customers being able to purchase a known entity no matter what city or state they are in. While one side sees their non-compliance as an improvement of a faltering product, the other sees it as a direct breach of contract that threatens to damage their brand.
Royalties and Fee Disputes
Franchisees may see the fees and royalties they pay their franchisor as unjust and undeserved, especially if support has been lacking ever since the start up. Calls for reduced fees may arise if the franchisee feels they have not received equal support in the relationship, or if they fall on hard economic times. This, in the franchisor’s mind, is a direct breach of contract.
Poor Communication on Both Sides Leads to Disputes
Both parties may have complaints when it comes to communication. The franchisor may feel that they are not being kept in the loop by the franchisee failing to submit reports and vital information, while the franchisee may feel left in the dark when it comes to the franchise’s direction as a brand or operational requirements.
Marketing
Both the franchisee and franchisor are likely responsible for paying the costs of marketing. However, the franchise is responsible for the creating the advertisements and branding of the company. Franchisees may feel that their money is not being wisely spent, that the marketing campaign is inept, or that they could do a better marketing job on their own. One of the main reasons that a franchisee looks to a franchise is because of the usually highly successful marketing the company has already done to create their strong branding.
Contact Us for Help
Our West Palm Beach franchise law attorneys are here to help you with your franchise needs. Please don’t hesitate to reach out to us today.
