What are the most common disputes between franchisors and franchisees?

In North Carolina, the most common disputes between franchisors and franchisees tend to involve the enforcement of the franchise agreement. This agreement outlines the obligations of both the franchisor and franchisee and is the primary source of disputes. Another common dispute involves the unpaid fees or royalties that franchisors are entitled to receive from franchisees. Other common issues include the quality and scope of the training, support, and advertising provided by the franchisor. In addition, disputes often arise when the franchisor attempts to terminate the franchisee agreement and the franchisee disagrees. In addition, disputes can arise from non-compete clauses, with franchisees feeling that the terms of the agreement are overly restrictive. Disputes can also arise based on the market or territory outlined in the original agreement and changes made over time that could potentially benefit the franchisor more than the franchisee. Finally, franchisees often dispute the franchisor’s right to control the franchisee’s business operations. This includes the franchisor’s right to impose fees, rules, and regulations on the franchisee. Fees and pricing regulations also frequently lead to disputes, as franchisees tend to want more freedom in setting the prices of their services or products. Overall, the most common disputes between franchisors and franchisees in North Carolina stem from the enforcement of the franchisor-franchisee agreement, unpaid fees or royalties, non-compete clauses, and the control of the franchise business operations.

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What are the most common disputes between franchisors and franchisees?

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