What are the most common disputes between franchisors and franchisees?

In Florida, disputes between franchisors and franchisees are common. Most disputes arise from disagreements between the two parties regarding the terms of the franchise agreement or the franchisor’s obligations to the franchisee. Common issues that arise include allegations of fraud by the franchisor, breach of the franchise agreement, failure of the franchisor to properly train and/or provide support to the franchisee, and the franchisor’s failure to provide the services or products promised in the franchise agreement. Other than the issues listed above, common disputes between franchisors and franchisees may include disagreements regarding royalty payments, failure to cover all territory, failure to provide the goods and services promised in the agreement, failure to conform to the standards set forth by the franchisor, and unauthorized use of the franchisee’s marks. In addition, disputes may arise from legal issues that come up, such as disputes over whether the franchisor has the right to terminate the franchise agreement or if the franchisee is allowed to transfer the franchise to another person or company. In Florida, franchise law is complex. It is important that franchisees and franchisors understand their rights and obligations under franchise law and consult with a qualified franchise attorney before entering into a franchise agreement. An experienced attorney can help both parties understand the franchise agreement and can help to resolve disputes that arise between them.

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What are the most common disputes between franchisors and franchisees?

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