BREACH OF CONTRACT

Franchisees frequently come to us to complain that the franchisors or suppliers are not doing what they said they would do at the outset of their agreements.  Sometimes this is a result of slacking off; sometimes it is the result of a change in management; sometimes the reasons are not apparent.

BUYING A FRANCHISE

Are you thinking about purchasing a franchise? Is your existing franchised business up for renewal? If so, The Fortune Law Group help you through the process. At The Fortune  Law Group, we utilize our extensive experience in working with franchisees to help you understand the Franchise Disclosure Document and the Franchise Agreement and we help you find potential trouble spots in your agreement before you commit.
Our franchise review includes a detailed report outlining the key terms of your franchise agreement and Franchise Disclosure Document and a follow-up telephone consultation to cover any remaining concerns. The detailed report includes an examination of key areas such as:

• Protection Against Same-Brand Competition;
• Termination and Renewal Rights;
• The Franchisor’s Obligations;
• Your Obligations;
• Dispute Resolution Procedures;
• Sale and Transfer Restrictions;
• Non-Competition Provisions; and
• Other Applicable Franchise Laws

We also assist you by suggesting changes to the agreement as written and can help you negotiate changes with your franchisor.
By allowing us to assist you before making the long-term commitment of becoming a franchisee or renewing your existing franchise agreement, we can attempt to help you save time and money by avoiding common issues found in franchise agreements before they become problems.

GROUP REPRESENTATION

It is often the case that there is power in numbers.  Frequently, groups of franchisees come to us to see if we can assist them with common problems that they are having.  We encourage franchisees to work in groups because, if the problems are common, a common solution can frequently be achieved if the strength of their numbers is shown to the franchisor.  Ms. Fortune is comfortable dealing with informal groups as well as formal associations. 

OTHER UNFAIR PRACTICES

At The Fortune Law Group, we are regularly confronted by franchisor or supplier conduct that does not necessarily fit the mold of historical wrongdoing.  We are, nonetheless, often reminded that if a practice appears to be unfair, it is likely to be found to be unlawful.  This is especially so in California where the State Legislature has specifically carved out areas of franchisee protection under the California Business and Professions Code and the California Corporations Code (“California Franchise Investment Law”).  Thus, if you are the victim of a franchisor or supplier practice that does not fit into any of the other categories that we have elaborated here, but you feel that you are being treated unfairly, please contact us to talk about it.

REFUSAL TO RENEW

Franchisors and suppliers sometimes attempt to achieve the same result as termination through a refusal to renew the franchise or dealer agreement at the end of its term.  Many statutes prevent the franchisor from doing so and allow the franchisee or dealer to continue in business so long as the franchisee is capably performing.  The Fortune Law Group will work to obtain compensation for dealers and franchisees whose suppliers or franchisors have refused to renew them without good cause in addition to seeking a  court order preventing such non-renewals and keeping the businesses alive.

TERMINATION

Sometimes, franchisors or suppliers attempt to terminate the relationship with their franchisee or dealer, even though the franchisee or dealer has done a good job.  Under the prevailing contractual and statutory law of many states, a franchisor/supplier cannot terminate a dealer or franchisee without good cause—meaning that as long as the franchisee does the job, he keeps the business.

These situations sometimes arise because the franchisor or supplier wants to take over a lucrative franchise for itself, or to consolidate its dealerships, or to transfer the dealership or franchise to a favored successor.

TERRITORIAL PROTECTION AND FRANCHISE EXPIRATION

With the increasing pressures from competitors, many franchisors try to increase the number of units that they have, often at the expense of existing franchisees.  Frequently, clients come to us and complain that they have built up the brand’s business in their territory over five, ten or more years and that now the franchisor or supplier is putting in new franchises in a way that is taking away the goodwill that they have built up.  In other cases, franchisors try to keep franchisees from expanding, even though the franchisor had promised they could do so.