Litigating Franchise Disputes

The relationship between a franchisor and its franchisees is much more interdependent than many business relationships. When disputes arise in a franchise relationship the stakes can be extremely high for both parties. For a franchisee, the entire investment in their franchised business may be at stake when a franchisor threatens to terminate or alter franchise rights. For a franchisor, an allegation of wrongful conduct by a franchisee may potentially have implications that affect the entire system and threaten the ongoing viability of the branded concept. The purpose of this course is to explore the distinctive aspects and considerations in franchise disputes.

In this course, Michael Einbinder and Jim Goniea of Einbinder Dunn & Goniea LLP, will provide an in‐depth examination of the unique issues that typically arise in arbitrations and litigations between franchisors and franchisees. The program will cover the anatomy of a typical franchise dispute from the perspective of both franchisor and franchisee, the claims, defenses and remedies that tend to arise in such disputes, franchise specific laws that affect the outcome of such disputes and the specific aspects of the franchise business model that affect the outcomes of such disputes.

Learning Objectives: 

1. Review the dynamics of the business relationship between franchisors and franchisees

2. Examine the reasons that franchise disputes typically arise

3. Advise on the unique considerations applicable to franchisors and franchisees in disputes that arise in the franchise relationship

4. Identify issues affecting decisions concerning choice of venue

5. Discuss the claims and defenses that are common to franchise disputes from the perspective of both franchisor and franchisee

6. Understand discovery issues unique to franchise disputes

7. Address the franchise specific laws affecting franchise litigation and

8. Grasp the unique leverage points in franchise disputes that franchisors may have over franchisees or that franchisees may have over franchisors

9. Recognize typical settlement and workout opportunities that tend to arise in franchise disputes