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Dealing with franchise disputes

On Behalf of | Feb 20, 2021 | Blog, Franchise Law |

Many people in Florida become franchisees with the hopes of running their own business. Owning a franchise allows you to join a company that’s already successful and get some management experience. However, becoming a franchisee also has a special set of challenges that you won’t find with regular businesses.

What causes franchise disputes?

Disagreements between franchisees and the main franchisor frequently cause disputes. According to franchise law, franchisees have to abide by the rules set by the franchisor. Many franchisees want to treat their location like their own business and run it however they want. However, they have to follow a strict set of rules to make sure their location is consistent with the company’s products and branding.

Sometimes, a franchisor can cause conflict with their franchisees. They might force their franchisees to make expensive changes or commit to new policies that will harm their employees. The franchisee might find that there’s not much they can do about it because when the franchisor is in charge, the rest of the company has to follow their lead.

A franchisee could also cause a dispute by leaving the business and going to work for the competition. They might give the competition company information about their previous employer, compromising important data. This might even constitute an illegal breach of contract.

Finally, a franchisor might cause tension if they don’t provide their franchisees with enough support. They might make themselves difficult to reach or refuse to give their franchisees the training and information that they need to be successful. As a result, new business owners may find it difficult to run their location.

How can you settle franchise disputes?

If you’re a franchisee who’s having a dispute with your franchisor, you might want to contact an attorney. Your attorney might be able to help you settle the dispute or leave the company without breaking your contract. They may also help you review franchising opportunities and choose the offer that’s best for your situation.