If are struggling with the operations of your franchise, you may be made to feel like it is your own fault. However, the fault may lie with the franchisor. And when this occurs, you may have to fight for justice via litigation proceedings. This is when an attorney steps in. Continue reading to learn how one of the experienced franchisee litigation attorneys at FortmanSpann, LLC, can step in to hold a franchisor accountable for their obligations toward you.
When is it necessary to hire a franchisee attorney?
Put simply, a negligent franchisor is one that does not provide a system, support, or tools to help a franchisee succeed. So if this has been your experience with your franchisor, then you must hire a franchisee attorney. With that being said, below are examples of franchisor negligence that may prompt litigation:
- A franchisor performed a breach of contract: this is when a franchisor neglects to perform the obligations that they promised to perform for you, as a franchisee, in the contract and instead took actions that directly go against the contract. For example, a franchisor may go against the terms and conditions regarding a contingent basis.
- A franchisor performed encroachment: this is when a franchisor violates their contract with you, as a franchisee, by infringing on your protected property. For example, a franchisor may sell additional franchises too close to your already existing protected territory which may come with financial consequences.
- A franchisor committed fraud: this is when a franchisor deceives you, as a franchisee, in any way that hurts your operations. For example, a franchisor may misrepresent their financial statements, offers inadequate franchisee history, perform a breach of exclusivity, or maybe operate a pyramid scheme, among other things.
- A franchisor unreasonably harvests your investment: this is when a franchisor fails to inform you of how to properly renew your franchise agreement and they reap your investment as a result.
- A franchisor unreasonably makes system-wide changes: this is when a franchisor performs a breach of contract and makes a change that has detrimental financial consequences for you, as a franchisee.
- A franchisor has unreasonable supply chain sourcing and pricing: this is when a franchisor abuses their control of the supply chain so that they can receive a greater financial benefit. For example, a franchisor may not disclose or improperly discloses their relationship with the supply chain so that they can make a significant amount of money off the required franchisee purchases.
There are many other ways that a franchisor can practice negligence, all of which are completely unacceptable. So if you believe that you have a case against your franchisor, then you must retain legal representation from one of the skilled franchise law attorneys. Schedule your initial consultation with us today.