Franchise Disputes
Franchise disputes arise where there is a disagreement between the franchisee, the person or company that has the right to operate a franchise business and the franchisor, the person or company who has the right to sell or grant the franchise rights to sell the goods or services. Consequently, a franchise dispute can occur for a variety of reasons. For example, as a result of a disagreement in terms of what a franchisee can or cannot do in terms of the business. Similarly, a franchise dispute may also arise if one party has failed to comply with their obligations and as a result the other party has suffered loss. Alternatively, a franchise dispute can arise where a misrepresentation occurs, which the franchisee relies upon. For example, a misrepresentation as regards overheads or sale projections.
In addition, a franchise dispute may also arise due to the use of intellectual property rights. For example, the use of logo’s, branding etc without permission or outside of the scope of what was permitted when entering into the franchise agreement. Furthermore, a franchise dispute can also occur upon termination of the franchise agreement, determining how the parties are to part company, or the enforcement of restrictive covenants.
How we can help when a franchise dispute arises?
A partnership is created where one or more people join together with the common interest to share in the profit and loss of a business. As a result, often people find themselves involved in a partnership, without intending to be. Consequently, this can cause issues when the parties involved wish to part ways or where difference of opinion occurs over time.
Often, the difficulty arises in circumstances where a formal agreement has not been entered into, setting out the parameters of the partnership. For example, the intentions behind the formation of the partnership or the basis upon which the partnership is to operate. In addition, a formal partnership agreement can deal with how the partnership is to be dissolved, or the circumstances in which a partner can be removed. Furthermore, it can address the basis of remuneration and how decisions are to be made.
Above all, unless otherwise agreed, decisions relating to the nature of the partnership will need unanimous agreement, whereas business decisions require a simple majority.
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