Common Claims In Franchise Litigation
There are some franchise relationships that end bad. In case this leads to threats and litigation, having someone who will provide you with franchise litigation services is important. Here are some of the common claims that a lawyer can help you with:
- Franchisee fraud – The franchisee might have a fraud or a contract claim if the franchisor doesn’t deliver the promised benefits of the franchise system such as promising the franchisee would earn a certain level of revenue that never materialized.
- Franchisee encroachment claim – This happens if it puts other franchises or sales outlets unreasonably close to a franchisee, or it sells over the internet into a franchisee’s territory.
- Unliquidated damages – The franchisor’s primary claim is for liquidated damages that are specified in the Franchise Agreement, or the recovery of the royalties and fees that the franchisee would have paid had he stayed in the system until the end of the term.