Broadly speaking, lawsuits by franchisors are brought to: (i) protect intellectual property rights; (ii) enforce system standards; (iii) enforce non-competition obligations; and (iv) recover money owed. The attorneys who handle these lawsuits must accomplish these goals expeditiously, so as to effectively manage their clients' resources.
At Einbinder & Dunn, LLP, we are well prepared for the task. Our trial lawyers use years of experience representing franchisors in litigation, handling claims originating in New York state and throughout the United States. Over time, we have earned a national reputation for taking our clients' businesses to the next level. This means keeping our clients' long-term goals in mind as well as their short-term goals — remaining cognizant of how the decisions we make in litigation today can help protect our clients' interests in the future.
- Enforcement of intellectual property rights: When a terminated franchisee continues to use a franchisor's trademarks or service marks, the franchisor must take the matter seriously. At Einbinder & Dunn, LLP, we can take action to enforce franchisors' intellectual property rights. Depending on the situation, we may assert unfair competition, trademark infringement and counterfeiting claims against non-compliant former franchisees.
- Failure to abide by system standards: By allowing franchisees to flout brand standards, franchisors risk a rash of non-compliance by other franchisees who perceive the franchisor as lax. When this occurs, the brand identity is weakened and lasting and permanent damage to the system can occur. Our law firm can help franchisors take action to protect system standards, including filing claims for breach of the franchise agreement. These claims may be necessary to compel a non-compliant franchisee to maintain uniformity and consistency of operations.
- Enforcement of Non-Competition Provisions: We can file for injunctive relief so that terminated franchisees are required to comply immediately with certain obligations, including post-termination de-identification obligations, which may interfere with a franchisor's intellectual property rights.
- Financial Relief: Frequently, when a franchisor sues a current or terminated franchisee, it is simply to collect money owed. Franchise agreements typically require franchisees to pay royalty, advertising and marketing fees. When a franchisee fails to pay these, our firm can seek judicial intervention to recover for breach of contract.
Contact Our New York and Nationwide Franchisor Attorneys Einbinder & Dunn
For questions or additional information about Einbinder & Dunn's litigation services for franchisors, please contact us by filling out our contact form. You can also call 866-490-4909 or 212-391-9500 to speak with our attorneys and experienced support staff.
Julie Lusthaus was interviewed on WVOX 1460 AM by Marsha Gordon, President and CEO of The Business Council of Westchester about issues in franchising.
