Best Law Firms Ranked By Best Lawyers | United States | Franchise Law | Tier 1 | 2026
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To help ensure accuracy, this page was written, edited and is periodically reviewed by a knowledgeable team of legal writers and editors. It was edited and approved by founding attorney Robert Zarco, who has decades of experience as a Business Law and Commercial Litigation attorney. The last modified date shows when the page underwent the most recent review.

Franchise litigation is considered a last resort in this law firm when seeking a remedy or relief for disputes between the franchisor and franchisee. The firm always endeavors to resolve conflicts through alternative methods before resorting to litigation. While methods such as face-to-face meetings, settlement conferences, or mediations are initially pursued, there are instances where these approaches are unsuccessful in achieving the desired remedy. In such cases, litigation becomes the ultimate recourse.

Litigation can encompass a broad range of legal claims. Declaratory actions may arise when there is disagreement over the interpretation of contractual provisions or the expectations placed on the franchisee. Breach of contract provisions may be invoked when one party fails to fulfill their obligations under the contract. The breach of the implied covenant of good faith and fair dealing is another aspect, where parties are expected not to interfere with each other’s ability to benefit from the contract. This is typically implied in most states but often tied to an express provision in the contract. Fraud claims, negligence claims, violations of statutory regulations, deceptive and unfair trade practices, as well as breaches of state pre-sale disclosure statutes are among the various claims that may emerge in franchise litigation. Additionally, certain states may have specific franchise relationship statutes, and violations of these statutes can lead to legal claims. The nature of the claims depends on the specific issues involved in each case.

Mediation, arbitration, and litigation represent distinct forms of alternative dispute resolution (ADR). In mediation, parties engage with a neutral facilitator, typically an experienced lawyer or retired judge, guiding them toward an agreement without making rulings. Litigation arises when disputes persist, leading to lawsuits, court involvement, and a comprehensive legal process overseen by a state or federal judge. Arbitration, viewed as a cost-effective and efficient alternative, involves a private arbitrator rather than a government-employed judge. However, concerns arise as arbitration may prove costly, and its provisions can mirror complex legal proceedings, limiting appeal options. The potential expense and lack of recourse in arbitration may disproportionately impact parties with limited financial resources.

There is no claim that justifies or will uphold a lawsuit solely based on the assertion that the spirit of the contract is not being followed. Good faith principles are considered when evaluating a potential breach of contract, but a claim of good faith and fair dealing typically must be tied to an express provision in the contract that addresses the issue. The spirit, or better termed as intent, of a contract is a factor that courts examine, especially when dealing with ambiguous provisions. If a contract is clear and unambiguous, there may be no need to delve into the spirit or intent. However, in cases where multiple interpretations are possible, courts may consider the testimony of witnesses to discern the spirit or intent of the parties when entering into the contractual relationship and what goals they sought to achieve for their mutual benefit.

I have encountered various types of fraud. There is active fraud, where someone makes a misrepresentation to you, knowingly providing false information to induce you to rely on it and act differently. This is a clear case of fraud. Additionally, there is fraud by omission or concealment, which is a form of passive deception. In this case, the party fails to disclose a known material fact. If you had known this fact, you would have acted differently, potentially choosing not to enter a business relationship or making different decisions.

A common occurrence in the franchise world involves situations where franchisees are not provided with the complete truth. Concealing important information or making exaggerated statements is unfortunately prevalent, as franchisors, at different maturity levels of their systems, may be eager to sell franchises and, in the process, make statements that are not entirely truthful. Efforts are being made to reduce such occurrences and ensure more transparency in the franchise industry.