Franchisee Promotional Program Guidance and Dispute Resolution

Franchisors support franchisees with promotional programs through national and local advertising funds, marketing materials and strategic campaigns. As part of the partnership, they also provide training and support to help franchisees execute marketing strategies effectively. Typically, franchisees contribute a percentage of their sales to these efforts, which helps maintain brand consistency and leverages the franchisor’s marketing expertise to drive business growth.

Zarco Einhorn Salkowski, P.A., is a prominent franchise law and commercial litigation firm that defends the interests of franchisees, dealers, licensees and distributors nationwide. Our experienced team comprises skilled trial lawyers proficient in economics, accounting and finance. We have been leaders in significant franchise cases that set important legal precedents in franchise law in federal and state courts around the country. Our commitment to our clients ensures that their promotional programs and marketing strategies are effective, compliant and uniform, and address your needs.

Counsel On Franchisee-Franchisor Disputes

At Zarco Einhorn Salkowski, P.A., our extensive experience in franchise law and commercial litigation enables us to effectively address and resolve conflicts that can surface in any franchising relationship. Franchisee-franchisor disputes can vary widely, but certain types of disputes are very common:

• Enforcement of franchise agreements: When franchisors do not uphold the terms of a contract or impose standards that are commercially unviable or inconsistent with the initial agreement, we can help hold franchisors accountable.
• Financial disagreements: Disputes over financial issues include royalty payments, advertising and technology fees, menu pricing and promotional programs, and the allocation of costs for required upgrades or renovations. Franchisees may believe that the franchisor is imposing unfair financial burdens that were not adequately disclosed in their agreement and severely impact profitability.
• Territorial disputes: This commonly happens when a franchisor opens a new location too close to an existing franchisee’s territory, potentially cannibalizing sales. This can lead to significant revenue drops for the affected franchisee and a breakdown in trust between the parties.
• Marketing strategies: Franchisors often require franchisees to contribute to national advertising campaigns that they feel do not benefit their specific location. In addition, franchisor advertising materials do not align with the local market needs of individual franchisees. We work with both parties to negotiate better terms for the franchisee.

We help franchisees thoroughly understand the specific terms and conditions of the franchise agreement involved. Given the leverage of our three decades of experience and national reputation, our approach is to expeditiously and affordably resolve a dispute, such as via a demand letter or mediation where possible, seeking to restore and maintain the relationship between the franchisee and franchisor. However, when necessary, we are uniquely positioned and fully prepared to defend our clients’ rights in court to level the playing field and ensure they receive fair treatment under the law.

We also advise our franchise clients on how to avoid potential disputes through clear, thorough, fair and balanced drafting and review of franchise agreements and by ensuring that both parties have a comprehensive understanding of their contractual obligations from the beginning.

Helping Franchisees With Promotional Programs

While the franchisor may provide marketing and promotional programs as part of the partnership, franchisees still often find it helpful to work with a franchise attorney when planning and implementing a promotional program for a business. Here are several services we can provide:

• Legal compliance: Laws vary from state to state. We can ensure the promotional program complies with relevant federal, state and local laws, including advertising, consumer protection and privacy regulations. This guidance helps prevent legal disputes and potential fines.
• Reviewing contracts and agreements: If the promotion involves third parties, such as vendors or marketing agencies, we can review contracts to help ensure favorable terms and protect your interests.
• Intellectual property protection: A lawyer can help ensure that promotional materials do not infringe on trademarks or copyrights and advise on protecting your licensed intellectual property.
• Terms and conditions: Lawyers can draft clear and legally sound terms and conditions for the promotion. This includes eligibility requirements, rules and disclaimers, which can help prevent misunderstandings and legal challenges from customers, competitors or the franchisor.
• Sweepstakes and contests: If the promotional program includes a sweepstakes or contest, a lawyer can navigate the complex legal requirements such as registration, bonding and compliance with state-specific laws.
• Pricing and antitrust issues: A lawyer can advise on pricing strategies and discounts to ensure compliance with antitrust laws and franchise agreements, if applicable.
• Consumer data privacy: If the promotion involves collecting customer data, a lawyer can help ensure compliance with data privacy laws and advise on best practices for data handling and security.
• Risk management: Lawyers can identify potential legal risks associated with the promotion and suggest strategies to mitigate those risks.

Unfortunately, some franchisors employ predatory business practices, violating antitrust laws and covenants of good faith and fair dealing. This can turn a franchisee’s dream into a nightmare, draining your life savings and destroying your investment. Our attorneys help ensure that your interests are protected and your promotion agreements are fair.

Here For All Your Franchise Needs

Whether you’re involved in a business dispute with your franchisor, evaluating a business investment, drafting legal documents or evaluating a new promotion, Zarco Einhorn Salkowski, P.A., can help you avoid costly mistakes and effectively negotiate to protect your interests. Contact us online or call 888-580-7844 or 305-703-5058 to schedule a free consultation.