The relationship between franchisors and franchisees can be highly profitable, and the two parties may also depend on one another for product management, advertising, and even mentorship. However, it is essential to remember that no matter how closely a franchisor and franchisee work together, they are still separate legal entities with distinct legal rights.
There may come a time when a conflict arises between these parties that must be brought to court and handled by qualified franchise attorneys. If you find yourself and your business embroiled in such a conflict in North Carolina, a North Carolina franchise litigation lawyer could help protect you in court.
A franchise agreement, at its most basic, is a contract through which a franchisee pays for the right to use a franchisor’s business model and intellectual property. This agreement is the basis for the franchisor-franchisee relationship.
A franchisor will be required to supply training among other things, while franchisee duties will include paying royalties, attending training sessions, and promoting the brand’s products and services, among others. A failure on the part of either party to live up to the terms of a franchise agreement could lead to franchise litigation.
As all disputes over franchise agreements are contractual disputes, state and federal courts in North Carolina have the authority to hear allegations of a breach of a franchise agreement. A Charlotte franchise litigation attorney could help a franchisor initiate a breach of contract case against a franchisee and/or defend a franchisor against an alleged failure to fulfill contractual obligations.
As with all contract lawsuits, courts follow basic civil procedure when handling franchise litigation cases. There may also be mediation sessions and private settlement talks to reach an amenable conclusion.
Once a party files a breach of contract complaint in court, pre-trial hearings would be scheduled to give each party the chance to exchange evidence, argue over points of law, and potentially negotiate a settlement. The goal of any seasoned franchise litigation lawyer in North Carolina is to resolve any conflict before it gets to court when possible.
In the event a trial is necessary to protect a franchisor’s legal rights, an attorney could help develop detailed strategies to prove to the court that the franchisor is not liable. Depending on the circumstances, the possible results could be the enforcement of contract terms, a forced end to a franchise agreement, or the payment of penalty damages.
Disputes between franchisors and franchisees are common, and these conflicts usually reach a resolution through private talks or mediation sessions. However, if these forms of dispute resolution fail to end the conflict, litigation may be necessary.
A Charlotte franchise litigation lawyer could go to court to protect or enforce your rights as a franchisor. They could also help explain your rights, identify realistic goals, and fight for your best interests. Get in touch today to schedule a consultation and learn what an attorney could do for you.