Franchise Disputes

Franchise Litigation and the settling of franchise disputes can be complex, requiring specific litigation experience and expertise. We are a leading firm in handling franchise agreement disputes and have an impressive track record in both prosecuting and defending franchising claims. Cubism Law is also an active member of the British Franchise Association (BFA).

Our dedicated franchising team is led by Andrew Pena (former Partner and Head of the Franchise Dispute Practice at Field Fisher Waterhouse) who has successfully handled over 1,000 franchising cases over the last 10 years. In all this time, Andrew and our Franchise Solicitors have:

  • Never lost at trial and have been successful in around 90% of the court applications made.
  • Have over 20 reported cases where Judgments have been made in favour of our clients.
  • During the last 12 months, Cubism Law has recovered over £1.5 million for our franchising clients and successfully defended (i.e. no sums being paid in either settlement or awards) over 100 claims that have been made against our franchising clients.

Our success is based on four key factors:

  • Legal Expertise – Our team has over 25 years experience in handling and settling franchising disputes with a track record of success that is second to none, we are 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) a clear understanding of the client’s expectations. We then create a road map on how to achieve the desired result in the most cost effective and efficient way for you.
  • 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 areas of expertise include:

  • Strategic Review of Franchisor business to minimize litigation risk.
  • Defending and prosecuting Misrepresentation Claims
  • Jurisdiction challenges.
  • Defending and prosecuting claims for breaches of (a) Franchise Agreements, (b) Developer Agreements, (c) Master Franchise Agreements and (d) Deposit Agreements
  • Advising on Termination of Franchise Agreements.
  • Prosecuting and Defending 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.

What Chambers & Partners (2013) says about the Cubism Law franchise team:

“The team at Cubism Law has been involved with a number of high-profile cases recently, and continues to attract praise from clients and peers. Clients note that the team has “a genuine ability to listen and analyse the issues,” and that it “helps the client to understand the process.”

Sources also feel the team shows “a clear and substantial knowledge of dealing with franchise matters from both a franchisor and franchisee perspective.” The team recently acted for Elsada Doyley in a landmark case against the Papa John’s pizza franchise, and for Thomas Brown Estates with regards to a disputed rebranding of franchisee-owned outlets.

Recent Work

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.

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