Services for Franchisees
SERVICES FOR FRANCHISEES
At Einbinder & Dunn, we counsel franchisee clients in transactional matters as well as dispute resolution. Our firm has an extensive history representing both franchisors as well as franchisees, allowing us to foresee issues and offer more all-encompassing solutions that bring both short- and long-term benefits.
Our firm assists franchisee clients in all matters relating to:
- Purchase of the franchise from the franchisor (or an existing franchisee), including advice on proper due diligence.
- Acquisition and development of multi-unit or area development and master franchise opportunities.
- Business formation, beginning with the creation and structuring of the franchisee entity, and including the drafting of shareholder or partnership agreements and the LLC operating agreement as appropriate.
- Review and analysis of franchise disclosure documents (FDD) and franchise agreements.
- Negotiations with franchisors (including the negotiation of renewals of existing franchise agreements).
- Formation and advisory services to franchisee associations.
- Real estate, including the review and negotiation of purchase agreements and leases and resolution of environmental and building code issues.
- Third-party agreements, including independent contractor, supplier, employment, confidentiality and non-compete agreements.
FRANCHISEE LITIGATION & ALTERNATIVE DISPUTE RESOLUTION
Our extensive experience in both litigation and franchise law makes us well-qualified to represent franchise clients in any dispute. Our firm advocates for clients in federal and state courts nationwide and in various alternative dispute resolution (ADR) forums across the U.S., including the AAA, JAMS, FranArb and the London Court of International Arbitration. Our franchise attorneys have served and are available to serve as neutral arbitrators and mediators as well.
Our firm advises and advocates for clients in litigation, arbitrations and mediations involving various aspects of franchisor-franchisee relationships, including:
- Franchise breach of contract claims
- Renewal agreement disputes
- Non-Competition agreement disputes
- Franchise encroachment claims
- Advertising and marketing fund disputes
- Site selection and support disputes
- Fraud claims
- Trademark and trade dress cases
There are various — and often creative — claims filed between franchisors and franchisees, and a great deal is often at stake. Accordingly, franchisees benefit from working with an experienced legal team as soon as they know a dispute may evolve into a litigation. By taking early action, the negative effects of litigation can often be mitigated.
We have extensive experience representing franchisees in litigation. Our experienced trial lawyers handle claims relating to the following:
- Financial performance representation
- Statutory unfair trade practices or franchise law violations
- Damages claims resulting from misleading initial investment estimates
- Competition by franchisor/encroachment
- Failure to train or support
- System modification
- System standards violations
- Advertising fund misuse
- Transfer/assignment of the franchised business or franchise system