Expertly Navigating the Intricacies of Franchise Disputes

Leading the Way in Franchise Law and Dispute Resolution

Franchising is a special way of doing business that brings together the best of both worlds – the freedom of being your boss and the advantage of working with a well-known brand.

However, disputes between franchisees and franchisors can arise, jeopardising business operations and relationships.

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Rostron Carlyle Rojas Lawyers

4.9

Based on 62 reviews

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Taya Laurens

12:12 25 Mar 23

I highly recommend Tyrone Thomas.

Rahul

05:35 23 Nov 22

Team at Roston Carlyle Rojas Lawyers specially Varun Gupta, Brendon McKenzie and Maisie Taylor are great professionals with competent and outstanding skills. From the first meeting with Varun Gupta, we got assured that we are with right people and they proved it. No doubt they are most recommendable team of professionals. Throughout the process they kept us updated and were available all the time for any questions or concerns. We will again contact them and recommend to my friends and network.

Janet Davey

07:04 05 Aug 22

Zoe Kansky is very professional and great to work with, she explains everything clearly from start to finish. She is also very friendly, l would definitely choose this firm again. I Highly recommend Rostron Carlyle Rojas Lawyers

Tina Mckay

11:27 01 Aug 22

Mysa was completely competent from start to finish, she seamlessly guided us through the legal process and was very informative, no question was too small. The RCR Lawyers team was there with us from the beginning to the end and helped us achieve closure with a positive result and for that we are extremely grateful.

Sweden Perez

15:39 10 Dec 21

Upon meeting with Varun, I never doubted that he’s certainly a brilliant solicitor and true enough, with all the things he did for us, he really surpassed our high expectations. He is very responsive in everything and even to a small detail. He is very professional that he would give an honest advice and direct answers to all our questions and enqueries. He never left us especially in a critical situations (yes, there were a lot of circumstances but Varun fixed them for us) but actually, he stayed with us up to the last minute of the day or until to settle everything that we need to do. Thank you Varun for helping us to buy our first home!!!

Luke Patrick

07:36 14 Jul 21

My partner and I went through these guys for a complicated partner visa case after being referred from a lawyer friend. After being told by other lawyers that it was either easy or impossible, these guys told it like it was, realistic (they also had the same fees as the others). Peter and Shanalee were with us the whole way to provide guidance and 2.5 years later we are happy to receive the news that the partner visa has been granted.Thank you for all of your hard work guys.All the best.

Types of Franchise Disputes

Franchise disputes can arise from various issues, such as:

Breach of Contract

Franchise agreements are the foundation of any franchise system. They detail the rights and responsibilities of both parties acting in the relationship.

The most frequent cause of franchise disputes is a breach of contract.

Breaches can happen for different reasons, like not paying royalties, not following rules or encroachment concerns.

Marketing and Advertising Practices

Franchisees depend on the franchisor’s marketing and advertising strategies to attract customers.

Disagreements may occur if one party believes the other is not acting in good faith.

It could involve disputes over marketing fund contributions, the effectiveness of advertising campaigns, or local marketing tactics.

Transparent communication between the prospective franchisees and franchisors is key to resolving such disputes.

Misleading Information

Disputes can arise when franchisees accuse the franchisor of providing false or fraudulent information during the sale process.

Franchisees may claim they were given wrong information about the business’s profits or the support from the franchisor.

Encroachment Claims

Territorial rights are essential for franchisees to protect their market share.

Franchisees may claim that the franchisor has allowed new franchise locations too close to existing ones, potentially impacting their profit margins.

Solving encroachment-related issues means checking the contract to see if the franchisor broke any agreed-upon rules.

Royalty Payments

Royalty payments are a crucial aspect of the franchise business model.

Disputes may arise if franchisees believe the royalties are excessive or if they question the value they receive in return.

Clear documentation of royalty calculations and open dialogue between the franchisor and franchisee can help prevent and resolve these disputes.

Quality Control and Brand Standards

Maintaining brand consistency and quality standards is paramount for franchisors to protect their reputation.

However, disputes can occur when franchisees feel these standards hinder their growth.

Effective communication, ongoing training, and a clear understanding of brand requirements are essential to prevent and address such disputes.

Understanding the nature of each dispute is key to formulating an effective resolution strategy.

Enquire About Franchise Disputes

We’re here to provide expert guidance and practical solutions, ensuring your business stays on the path to success.

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Crafting Custom Solutions for Franchise Dispute Resolution

Maintaining a positive and cooperative relationship with your business partners is crucial, especially in franchising. However, disagreements can arise, and when they do, there are different ways to resolve them.

These may include financial settlements, making corrections, or carefully examining financial records to ensure all obligations are met.

At RCR Lawyers, we are experts in alternative dispute resolution.

If you need help understanding these rules, our firm is here to help.

Our experienced lawyers are skilled at finding solutions for everyone involved, using negotiation, mediation and litigation techniques.

Mediation is when two parties work with a mediator to find a solution that suits everyone. It is a cost-friendly and time-effective solution.

If mediation doesn’t work, litigation comes into play, referring the matter to court. In these situations, seeking legal counsel is crucial to understanding your options.

Arguments can strain business relationships.

Our seasoned team boasts extensive experience navigating these intricate franchise agreements and effectively resolving disputes between franchisors and franchisees.

Rules like the Franchising Code of Conduct and the Competition and Consumer Act 2010 are present to treat everyone fairly.

These rules help protect small businesses and family enterprises from unethical practices like false advertising or unfair contracts.