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General Facts That Lead To Franchise Litigation In Restaurant Business

Another common factor that leads to franchise litigation is when the franchisees begin some actions that may spoil the public image and damage the profits of the franchisor. In restaurant business, this can happen if the franchisee is the lawful owner of a one restaurant chain but, also starts selling food items that belong to some other competitor restaurant chain or starts selling in-house made food items that can jeopardize the profits the franchisor would make in the end.

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General Facts That Lead To Franchise Litigation In Restaurant Business

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  1. General Facts That Lead To Franchise General Facts That Lead To Franchise Litigation In Restaurant Business Litigation In Restaurant Business This article sheds light on the common causes that lead to This article sheds light on the common causes that lead to Franchise Litigation cases being filed in the court of law. Franchise Litigation cases being filed in the court of law. The food business over the years has spread a lot with many The food business over the years has spread a lot with many restaurants giving a chance to new enterprising individuals to be restaurants giving a chance to new enterprising individuals to be restaurateurs and establish themselves in the hospitality industry. restaurateurs and establish themselves in the hospitality industry. Today, many law firms have turned into Restaurant Law Firms that Today, many law firms have turned into Restaurant Law Firms that have solicitors excelling in the field of restaurant franchising laws. have solicitors excelling in the field of restaurant franchising laws. There are many times, when you are in restaurant business There are many times, when you are in restaurant business franchisee do not agree with the changes being made by the franchisee do not agree with the changes being made by the franchisor, as you feel that will deeply impact your business in your franchisor, as you feel that will deeply impact your business in your territory. Similarly, the franchisor might not like the way the territory. Similarly, the franchisor might not like the way the franchisee is running his franchise. In such cases franchise disputes franchisee is running his franchise. In such cases franchise disputes might surface between the franchisor and the franchisee. might surface between the franchisor and the franchisee.

  2. Consequently, a litigation case may be fought between the Consequently, a litigation case may be fought between the franchisor and the franchisee restaurant. However, litigation mustbe franchisor and the franchisee restaurant. However, litigation mustbe the last gateway to end such ordeals. The case may be won byany the last gateway to end such ordeals. The case may be won byany one of the two sides, however, the amount of time, energy, one of the two sides, however, the amount of time, energy, resources, wasted in sorting out such battles can be really far resources, wasted in sorting out such battles can be really far fetched and damage the restaurant business to a great-greatextent. fetched and damage the restaurant business to a great-greatextent. These kinds of conflicts are a good chance for yourcompetitors to These kinds of conflicts are a good chance for yourcompetitors to move ahead in business and also do mudslingingthat you cannot be move ahead in business and also do mudslingingthat you cannot be trusted as a good franchisor. Your business image will get extremely trusted as a good franchisor. Your business image will get extremely hampered due to such legal lawsuits. hampered due to such legal lawsuits.

  3. The two common causes that litigation takes place in The two common causes that litigation takes place in franchise business are underlined below: franchise business are underlined below: The common factor that gives birth to litigation is when the The common factor that gives birth to litigation is when the franchisee alleges in the court of law that what he was promised by franchisee alleges in the court of law that what he was promised by the franchisor in the early stages of the agreement by verbal the franchisor in the early stages of the agreement by verbal promises have not been followed and they are missing from the promises have not been followed and they are missing from the franchise agreement. This annoying attitude of the franchisormakes franchise agreement. This annoying attitude of the franchisormakes the franchisee frustrated and he goes on to file a legal courtcase the franchisee frustrated and he goes on to file a legal courtcase against the franchisor. A franchisee must never depend onverbal against the franchisor. A franchisee must never depend onverbal promises, and a franchisor mustn’t make irrelevant promisesthat he promises, and a franchisor mustn’t make irrelevant promisesthat he cannot complete. cannot complete.

  4. Another common factor that leads to franchise litigation is when the Another common factor that leads to franchise litigation is when the franchisees begin some actions that may spoil the public image and franchisees begin some actions that may spoil the public image and damage the profits of the franchisor. In restaurant business, this can damage the profits of the franchisor. In restaurant business, this can happen if the franchisee is the lawful owner of a one restaurant happen if the franchisee is the lawful owner of a one restaurant chain but, also starts selling food items that belong to some other chain but, also starts selling food items that belong to some other competitor restaurant chain or starts selling in-house made food competitor restaurant chain or starts selling in-house made food items that can jeopardize the profits the franchisor would make in items that can jeopardize the profits the franchisor would make in the end. Litigations filed in such circumstances, sometimes take the end. Litigations filed in such circumstances, sometimes take years to resolve and can be painful for both the franchisor and the years to resolve and can be painful for both the franchisor and the franchisee in the end. franchisee in the end. Franchise Litigation can be prevented with the correct advice of Franchise Litigation can be prevented with the correct advice of Restaurant Law Firms. Restaurant Law Firms. Contact Us: Contact Us: Address: Address: Mario L Herman Mario L Herman 5335 Wisconsin Ave. NW 5335 Wisconsin Ave. NW Suite 440, Washington D.C. 20015 Suite 440, Washington D.C. 20015 Phone Number: Phone Number: 202-686-2886 Fax: Fax: 202-686-2879 202-686-2879 Email: Email: mherman@franchise-law.com mherman@franchise-law.com Web: Web: http://www.franchise-law.com/ http://www.franchise-law.com/ 202-686-2886

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