After a Franchise Agreement is signed and the parties are expected to perform their respective obligations, disputes can often arise between the franchisor and franchisee. The reasons for such dispute can vary. More often it is due to failure by the franchisee to achieve agreed performance targets, failure of the franchisor to provide full training and support to the franchisee, misrepresentation by the franchisor regarding the prospects of the franchise business, or intellectual property issues.
Franchise Litigation and the settling of franchise disputes can be complex. It requires specific litigation experience and expert knowledge of the inner mechanics of franchise relationships. Our team has an established track record in representing franchisors and franchisees acting on behalf of the claimant or the defendant. We also mediate in franchise disputes to settle a claim and regularly advise clients on disputes and litigation arising out of international franchise relationships and expansion programmes across the Americas, Europe, Asia, and Eurasia, including Russia and the CIS.
Our franchise dispute resolution team is headed by Andrew Pena the founder of Cubism Law and a renowned franchise dispute lawyer who has dealt with over 1,000 franchise disputes, led the winning team in 10 reported franchising cases, and most notably, has never lost a case at trial.
- Legal Expertise– Our team has over 25 years’ experience in handling and settling franchising disputes with a track record of success, our firm was founded by experts in franchise law.
- Strategic Awareness – We take a strategic approach to our case handling based on
- (i) a thorough analysis of the merits and
- (ii)(ii) a clear understanding of the client’s expectations and we create a road map on how to achieve the desired result in the most cost effective and efficient way.
- Litigation Experience – We have been working on a number of franchise management models that allow our clients to create leverage (and reduce their risk) where disputes arise. This includes a strategy to avoid the risk of group franchisee claims which are becoming increasingly prevalent in the franchising industry.
- Results based billing – We operate a low overhead model which allows us to offer you highly competitive hourly rates with an uplift for pre-determined success. We believe the model offers excellent value whilst offering us an honest incentive to keenly pursue positive outcomes for our clients.
Our track record:
- Obtaining Summary Judgment for over £320,000 against defaulting franchisee.
- Obtaining Judgment for over £125,000 against defaulting franchisee.
- Obtaining enforcement of post termination restrictions by way of Injunctive Orders and Undertakings.
- Defeating Group claim by 16 franchisees by obtaining Judgments against various franchisees for over £700,000.
- Obtaining Committal Order (and 2 year suspended prison sentence) for persistent breach of Injunctive Orders.
- Strike out of £100,000 franchisee claim for failure to comply with Court directions.
- Strike out of £60,000 franchisee claim through successful challenge to jurisdiction.
- Strategic Review of Franchisor business to minimize litigation risk
- Misrepresentation Claims
- Jurisdiction challenges
- Claims for breaches of (a) Franchise Agreements, (b) Developer Agreements, (c) Master Franchise Agreements and (d) Confidentiality Agreements
- Advising on Termination of Franchise Agreements
- Claims for damages arising out of termination of Franchise Agreements
- Enforcement of Post-termination Provisions including (a) breaches of restrictive covenants and (b) breaches of confidentiality obligations
- National and International Arbitrations based on Franchise Agreements
- Injunctions and Freezing Orders
- Defending Franchisee Group claims and representative actions