Introduction to Franchise Disputes
Franchise agreements are often very complex, meaning that franchise disputes can occur. Our specialist solicitors provide professional, practical and clear advice to both franchisees and franchisors on a wide variety of contract disputes.
Understanding the specific terms of a franchise agreement helps in identifying potential legal issues early.
Franchise disputes typically involve disagreements between franchisors and franchisees arising from contractual obligations, operational expectations, or rights under the franchise agreement.
Effective management of these issues is crucial.
These disputes can be disruptive and costly if not addressed promptly and professionally, emphasising the importance of an effective team and litigation preparedness.
Common triggers include misrepresentation, performance shortfalls, or territory conflicts.
Common Causes of Franchise Disputes
Franchise disputes often stem from:
- Misrepresentation - where franchisees rely on inaccurate claims about expected profits or business conditions.
- Intellectual Property issues - A claim for breach of intellectual property rights can arise if the franchisee uses the franchisor’s name, brand or logo without specific permission.
- Performance Issues - such as underperformance by either party or unmet support obligations from the franchisor.
- Territorial Encroachment - disputes where franchisors open competing branches too close to an existing franchisee's area, undermining exclusivity.
- Termination issues - There may be points of dispute when a franchisee wants to terminate the agreement with the franchisor, such as the enforceability of post-termination restrictive covenants.
Options for Franchisees and Franchisors
Legal Rights and Options for Franchisors
Franchisors may also enforce a range of rights to protect the integrity of the brand and business model:
- Terminate the franchise agreement for material breach, such as failure to meet sales targets or brand standards;
- Enforce restrictive covenants to prevent ex-franchisees from operating competing businesses;
- Protect intellectual property and take action against unauthorised use of trade marks, branding, or proprietary systems;
- Pursue damages or injunctions where the franchisee causes reputational harm or breaches confidentiality obligations.
Legal Rights and Options for Franchisees
Franchisees may be entitled to legal remedies under contract or tort law to resolve issues associated with their agreements. Common options include:
- Claims for breach of contract or misrepresentation;
- Seeking injunctive relief for breaches of territorial rights;
- Challenging restrictive post-termination covenants, especially if deemed unreasonable or anti-competitive.
How to Resolve the Franchise Dispute
If the parties want to resolve the dispute and continue with the franchising agreement, it is important to resolve the dispute amicably.
The best approach in these circumstances would be to explore Alternative Dispute Resolution such as a round-the-table meeting or formal mediation. Engaging in negotiations is crucial. Mediation involves the parties appointing an independent mediator who seeks to offer a solution to the disagreement and assist in reaching a settlement. This process requires a dedicated team to navigate the service effectively.
This process requires a dedicated team to navigate the mediation effectively. The nature of mediation means that it is not as confrontational or as costly as litigation, and therefore it helps to preserve the business relationship between the parties.
However, there may be some circumstances where alternative dispute resolution or mediation would not be appropriate. For instance, if the relationship between the parties has completely broken down, then mediation is unlikely to be successful.
In such cases, litigation might be the only viable path. In these circumstances, it may be that the franchisor or franchisee wants to bring the business arrangement to an end, which could necessitate litigation.
Best Practices for Avoiding Franchise Disputes
- Develop a partnership with experienced legal professionals to guide franchisees through complex commercial issues.
- Ensure clarity in franchise agreements – define roles, territories, financial expectations, and clear terms of termination conditions in detail.
- Maintain transparent communication – regular dialogue between franchisor and franchisee can prevent escalation. Regularly review obligations – compliance with operational standards and updates helps foster trust and reduce conflict.
How We Can Help
At Myerson Solicitors, we provide specialist legal support to both franchisors and franchisees involved in franchise disputes.
Our experienced dispute resolution team offers clear, commercially-focused advice to help you:
- Understand your rights and obligations under the franchise agreement
- Resolve disputes efficiently through negotiation, mediation, or litigation
- Protect your brand, territory, and commercial interests
- Enforce or challenge restrictive covenants and misrepresentation claims
- Draft or review franchise agreements to prevent future issues
We act quickly and discreetly to minimise disruption and safeguard your business. Whether you’re seeking to resolve a dispute or need strategic advice, we are here to support you at every stage.
Why Work With Our Dispute Resolution Team
- For the past seven years, the Legal 500 has rated us as a Top Tier legal firm.
- There are in excess of 30 specialist lawyers in the Myerson Dispute Resolution Group, who will assist you with cases involving shareholders, partnerships, directors, inter-company disputes, professional negligence, and commercial agency issues.
- You will obtain city-quality dispute resolution legal help at regional pricing.
- We offer a partner-led service to make sure you get the greatest legal counsel and support with a focus on business.
- Our large and experienced team can work quickly to fulfil your deadlines.
- We recognise that each transaction is unique to your specific circumstances and that you require the assistance of a dispute resolution solicitor who has dealt with a wide range of clients and types of work.
- We are a full-service law company with a single location, which ensures our employees interact effectively and efficiently.
- We employ the most recent technology to make sure that we are operating as effectively as possible and that a client's location is not a barrier to us providing outstanding customer service.
- All of our clients receive free newsletters and webinars that keep them informed about dispute resolution legal developments. View our most recent webinar on dispute resolution updates.
- Check out the Myerson Promise for more information on the benefits of working with us.
Funding
Our Dispute Resolution Solicitors are happy to discuss your situation in a no-obligation and free consultation by telephone.
We also offer different funding arrangements to suit your individual needs. Conditional fee agreements or “No win, no fee” arrangements may be available, as may insurance policies or third-party funding.
At Myerson, our litigation funding team will provide guidance in handling the financial risk that comes with litigation and directing any of those costs off your credit sheet.
We understand the costs that come with litigation, which is why we act with integrity. We will only provide funding as an option if it is in your best interests. We can advise you on whether your claim is suitable for litigation funding.
Find out more about the different litigation funding options that may be available to you.
Testimonials
Mr. Blakey
Fantastic service as always from Myerson. The quick communication makes all the difference.
Jack
Like most people I don't find myself in situations that require a solicitor very often. So, the process can feel a little intimidating and daunting when it does come up. But, Suzanne at Myserson was both professional and supportive during my case - giving me excellent, informed and realistic advice which gave me the reassurance to successfully resolve my case.
Legal 500
The team at Myerson are very effective, dynamic, ambitious and very personable. A very cohesive and positive team that consistently achieve excellent results for their clients. The team consistently rise to the challenges presented by challenging cases.
Richard
Myerson have helped us with successful outcomes in legal disputes, contract negotiations and re-writing our Terms & Conditions. We have always found their service to prompt, positive and in relatively simple terms. I have entire confidence that they are giving me sound advice. I would fully recommend their services and we feel well protected in the future.
Legal 500
They have the personal and connected touch only a small firm can have. However, they have the expertise you would normally only expect from a big firm. The best of both worlds.
Carl
The guys at Myerson Solicitors made what could have been a very tricky and stressful case much easier to deal with. Very professional in their approach but also friendly and informative. Their advice from start to finish was extremely sound and they managed to achieve a very successful outcome.
Legal 500
The commercial litigation team at Myersons is a regional team doing national level work – with aplomb.
Olivier
My French company, an international textiles sales agency, was involved in a difficult breach of contract with one of its UK client. Difficult because an expertise was needed in this field of activity; difficult because our client took an approach which wasn't decent to say the least. Myerson debated very professionally and defended our position strongly up to win our case considering the results obtained before we needed to go to court. I will recommend Myerson to my other French agents colleagues.
Malcolm
Used Myerson for a business contract dispute that I had. The matter is now concluded to my total satisfaction. In one word Meyerson were amazing. From evaluating expectations, to giving good direction and magnificent advice I was, and am, impressed.
Legal 500
Great reputation as one of the better dispute resolution teams in the North West Excellent team with an all-round attention to detail.
Jill
The help we have received advising us on commercial agents' contracts has been hugely beneficial. In particular, Suzanne has helped us with the exit of an agent from the business. This has been handled with great professionalism and calm, direct advice, which has supported us through a very delicate process. With Suzanne's help we have reached a mutually agreeable outcome and we are happy that this gentleman can leave the business without any animosity, which was our definite preference.
Freyja Handy - Senior Vice President & General Counsel (Europe), ASM Global
We’ve had an excellent experience working with Myerson in relation to a number of disputes. They were highly responsive, pragmatic and maintained a strong commercial and cost-conscious focus throughout. Their advice was always clear I wouldn’t hesitate to recommend the dispute resolution team to others seeking reliable and commercially minded legal support.
Legal 500
A dynamic, personable and highly effective team with tremendous strength in depth. This team consistently achieves excellent results for their clients. Clients benefit from the positive approach of the team at Myerson, however challenging the dispute.
Mr. William
Fantastic service as always. Quick, clear and honest communication. The team is very supportive which is exactly what’s needed when going through any legal scenario. I highly recommend this company.
Legal 500
Suzanne Carr is an immensely talented litigator who is adept at steering disputes to a successful conclusion and remaining focused on the key issues.
Legal 500
Adam Maher and his team are pros. Adam is an intellectual powerhouse. He stays calm under pressure yet remains focused, confident and motivated to produce the best results. He has great attention to detail and won’t take any nonsense. Good integrity and can argue well.
Legal 500
My view is that this firm is one of the best, focused, strategic and hardworking outfits in the region; with attention to detail and a laser sharp focus on the case at hand, you absolutely want them on your side in any piece of challenging commercial litigation. They will give most London law firms a run for their money.
Legal 500
Sven Clarke is a superstar. He has the rare mix of legal clout and commercial nous. He's a formidable opponent.
Legal 500
Adam Mayer leads a team of talented lawyers. The team give pragmatic advice, but are not afraid of taking on difficult cases. Particularly strong with regards to shareholder and partnership issues, showing an excellent grasp of the law and the nuances of dealing with interpersonal business disputes.
Legal 500
The commercial disputes team punches well above its weight - easily going toe-to-toe with London firms in contractual and shareholder disputes.
Legal 500
Adam Mayer combines excellence in his specialist area of law with being very approachable. He is commercial and pragmatic, but will still fight your corner.
Legal 500
This team is outstanding in its strength in depth, positivity, teamwork and client care skills. A “can do” attitude runs throughout the team from partner to trainee and the team is very cohesive. Particular depth of experience in shareholder disputes.
Ms Wilson
Amna Iqbal and David Jones have been exceptional with their support and advice during what has been a very difficult case.
Legal 500
Adam Maher is an outstanding leader and litigator. His strategic vision is excellent, his legal analysis is first-rate and his leadership of the team is always very positive, leading to excellent results.
Boti
Myerson Solicitors helped me retrieve 50K compensation from FSCS over poor financial advice I had received with regards to my pension. I received professional and efficient service throughout the process. All my calls and emails were responded to promptly. I was going to use Myerson Solicitors on a no win no fee basis. They advised me against it as they thought I will be paying a lot more and I have a reasonable chance for a successful outcome. They were absolutely right and I am glad that I trusted them.
Legal 500
Sven Clarke is a real stand-out – he’s a dream to work with, extremely bright, and unflappable.
Meet Our Dispute Resolution Team
Contact Our Experts
You can contact our lawyers below if you have any more questions or want more information:
0161 941 4000
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