If your franchise is struggling and your franchisor is to blame, it may be time to take legal action. Schedule a free consultation to find out if you should file a lawsuit against your franchisor.
When you bought your franchise, you had high hopes. Your franchisor promised the moon, made you feel like your business would be an integral part of its system and all but guaranteed your financial success. Then, as time progressed, things changed. Communications waned, you started to notice shortcomings and you found that the franchisor’s “proprietary standards” became less of a benefit and more of a liability.
Unfortunately, this type of scenario is common in the world of franchising. Franchising is a sales business, and many franchisees find themselves feeling abandoned once they have passed through the “sales funnel” and signed up for a long-term commitment. While this situation is far from ideal, the good news is that franchisees who have been misled and mistreated will often have grounds to take legal action against their franchisors.
Grounds for Franchisees to File Lawsuits Against Their Franchisors
With over 30 years in the franchise industry, attorney Jeffrey M. Goldstein is a trusted advocate for franchisees in litigation. Our firm exclusively represents franchisees and dealers; and, with extensive experience in state and federal litigation as well as alternative dispute resolution (ADR), we have established a proven track record of efficiently securing favorable results for our clients. We represent franchisees in all types of lawsuits against their franchisors, including those based upon:
- Antitrust Violations – State and federal antitrust laws limit the competitive restrictions that franchisors can place on their franchisees, and provide remedies for franchisees harmed by price fixing schemes and other unlawful practices.
- Breach of Franchise Agreement – While franchisor’s contractual obligations are usually limited, the obligations they do have are significant. We pursue cases against franchisors based upon failure to enforce territory rights, warranty breaches and other contractual violations.
- Disclosure Violations – State franchise laws impose strict requirements for Franchise Disclosure Documents (FDDs) and other marketing materials provided to franchisees during the sales process. If your franchisor’s FDD or other materials were inaccurate or misleading, you may have statutory remedies available.
- Discriminatory Practices – If your franchisor is “selectively enforcing” franchisees’ obligations or engaging in any other form of unlawful discrimination, we can help you enforce your rights.
- Franchisor Fraud – Along with disclosure violations, franchisors can face liability for other fraudulent practices and representations as well. We have extensive experience in cases involving multiple forms of franchisor fraud.
- Territory Encroachment – Territory encroachment can have devastating consequences for a contract-abiding franchisee. If your franchisor is encroaching with company-owned outlets or allowing other franchisees to target customers in your territory, we can take aggressive action to enforce your rights.
- Wrongful Termination – We also routinely represent franchisees in claims for wrongful termination. These cases commonly involve both contract-based and state law claims, and successfully pursuing remedies for wrongful termination requires significant experience in franchise litigation.
As a boutique law firm, we are able to offer rates that are far less than those charged by lawyers at large law firms with less franchise-specific experience. Learn more about our fee options for franchise litigation.
Discuss Your Case with an Experienced Franchise Attorney
If you would like to speak with an experienced franchise attorney about the possibility of filing a lawsuit against your franchisor (or the alternatives you may have available), we encourage you to schedule a free consultation. To speak with attorney Jeffrey M. Goldstein in confidence, please call (202) 293-3947 or submit our consultation request form today.