Einbinder & Dunn, LLP counsels franchisee clients both in dispute resolution including litigation, arbitration, mediation as well as in transactional matters including acquisition of franchises and related issues. The firm calls upon its extensive experience representing franchisors as well as franchisees to advise its franchisee clients with respect to the franchise relationship, helping them to minimize the risks associated with franchising.

E&D efficiently represents franchisees nationwide in disputes with franchisors in state and federal courts and as well in arbitration and mediation venues. On behalf of franchisee clients, the firm has brought affirmative claims concerning, for example, earnings misrepresentations made by franchisors, franchisor misappropriation of advertising and rebate funds, and all manner of franchisors’ breaches of franchise agreements (e.g., encroachment, improper termination, unreasonable withholding of approval of sales of franchised businesses, among many others). Einbinder & Dunn regularly represents franchisee clients in disputes relating to non-compete agreements (Non-Competition Covenants in Franchise Agreements), confidentiality of trade secrets, continued use of proprietary marks, and other post-termination matters. The firm defends franchisee clients against claims of violations of systems standards, failures to remodel/refurbish, and trademark infringement/unfair competition. The firm has, when appropriate, counterclaimed on behalf of franchisee clients alleging illegal discrimination and inequitable treatment of franchisees in violation of federal civil rights protection statutes.

The firm assists franchisee clients in all matters relating to business development, beginning with the creation and structuring of the franchisee entity, including the drafting of shareholder or partnership agreements and LLC operating agreement as appropriate. E&D will then counsel the franchisee regarding purchase of the franchise from the franchisor (or an existing franchisee), including advice in proper due diligence. It is the firm’s goal to aid its franchisee clients in making (and protecting) sound investments. In this context, Einbinder & Dunn reviews all disclosure documents and franchise agreements, alerting its franchisee clients to any potentially dangerous provisions and negotiating with franchisors to obtain more favorable terms. The firm also advises its clients in the negotiation of renewals of existing franchise agreements (Renewal Agreements- The Ticking Bomb). Einbinder & Dunn represents franchisees in real estate matters as well, including the review and negotiation of purchase agreements and leases and resolution of environmental and building code matters. The firm also drafts agreements with third parties, including independent contractor, supplier, and employment agreements and confidentiality and non-compete agreements.

The ability of franchisees to negotiate issues with their franchisors is often crucial to the franchisees’ success. E&D has represented franchisee associations in system-wide negotiations and dispute resolution with franchisors. While franchisee associations are generally most useful in times of crisis and times of change, those are not typically the best times to form franchisee associations. It is better to have an association in place in advance.(So You’ve Bought Your First Boat) Einbinder & Dunn assists in the formation of franchisee associations for clients seeking to level the playing field otherwise tilted in franchisors’ favor. For more information about franchisee associations, read Michael Einbinder’s Franchisee Associations—Franchisees Band Together for the Benefit of All.

Einbinder & Dunn is dedicated to providing cost-effective legal representation to its clients. The partners and their staff of experienced associates and paralegals apply a hands-on approach to each matter, offering clients the individual attention that larger firms often can not. Our attorneys are responsive and creative, working in each client’s best interest to achieve superior results, bringing the unique experience gained from representing both franchisees and franchisors to work for every client.

If Einbinder & Dunn can assist you, please contact E&D via telephone at (212) 391-9500 or email at info@ed-lawfirm.com.

Other Franchise Law sections:

• Einbinder & Dunn’s Franchise Practice
• Services for Franchisors
• FAQ’S for Franchisors
• Amended FTC Rule and FDD Conversion
• Is Your Business Franchisable?
• Comprehensive Franchise Review
• Services for Franchisees
• FAQ’S for Franchisees
• Representative Franchise Systems
• Franchise Articles and Media
• Franchise News/Case Notes
• Useful Links and Resources