Effective Representation of Franchisees In Disputes & Transactions |
Einbinder & Dunn counsels franchisee clients in transactional matters as well as dispute resolution. The firm's Unique Perspective and Experienced Approach® stems from its extensive history representing both franchisors as well as franchisees, allowing it to foresee issues and offer more all-encompassing solutions that bring both short- and long-term benefits.
The firm assists franchisee clients in all matters relating to:
- The purchase of the franchise from the franchisor (or an existing franchisee), including advice on proper due diligence.
- Business formation, (beginning with the creation and structuring of the franchisee entity, and including the drafting of shareholder or partnership agreements and the LLC operating agreement as appropriate).
- Review of disclosure documents and franchise agreements.
- Negotiations with franchisors (including the negotiation of renewals of existing franchise agreements).
- Real estate, including the review and negotiation of purchase agreements and leases and resolution of environmental and building code issues.
- Third-party agreements, including independent contractor, supplier, employment, confidentiality and non-compete agreements.
Franchise Litigation & Alternative Dispute Resolution
Einbinder & Dunn represents franchisees nationwide in disputes with franchisors in state and federal courts as well as in arbitration and mediation venues. On behalf of these clients, the firm has brought affirmative claims concerning such matters as franchisor earnings misrepresentations, misappropriation of advertising and rebate funds, and breaches of franchise agreements. The firm regularly represents franchisee clients in disputes relating to non-compete agreements, confidentiality of trade secrets, continued use of proprietary marks and other post-termination matters. It also defends franchisee clients against claims of violating systems standards, failure to remodel/refurbish and trademark infringement/unfair competition. In addition, 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.
Franchisee Associations
The ability of franchisees to negotiate issues with their franchisors is often crucial to the franchisees' success. Einbinder & Dunn has extensive experience in the formation of such franchisee associations for clients seeking to level the playing field otherwise tilted in the franchisor's favor. The firm also represents these franchisee associations in system-wide negotiations and dispute resolution with franchisors.
Einbinder & Dunn is committed to providing the most cost-effective legal representation to its clients. The firm's partners and staff of experienced associates and paralegals apply a hands-on approach to each matter, offering clients the individual attention that larger firms cannot. With the experience gained from representing both franchisees and franchisors, our attorneys are responsive and creative, working in each client's best interest to achieve superior results.
Franchising Basics for Franchisors & Franchisees: What is a Franchise? What is a Franchise Disclosure Document? Is Registration Required?
Michael Einbinder of Einbinder & Dunn, LLP, explains to both franchisors and franchisees the dynamics of buying a franchise by explaining its elements, trademark, system of operation, franchise fees and compliance with franchise laws, like the FTC Regulations, the New York State Franchise Sales Act, providing the Franchise Disclosure Document and exemptions to registration of the Franchise Disclosure Document.
Practical Tips for Preparing and Reviewing a Franchise Disclosure Document
In this second part, Michael Einbinder reviews the 23 items that franchisors need to put in their Franchise Disclosure Document (FDD) and practical advice for franchisees when buying a franchise, including reviewing the FDD, reviewing financial statements, speaking with former franchisees, preparing a business plan and retaining professionals.
Preparing and Negotiating the Franchise Agreement and Typical Franchisor Claims
Michael Einbinder continues to look at the 23 items required in the Franchise Disclosure Document, explains the Financial Performance Representations, typical franchisor claims, including trademark and non-competition claims and discusses key terms contained within a franchise agreement including the franchisor's reservation of rights, renewal, non-competition provisions, dispute resolution.
Typical Franchisor Claims Continued and Typical Franchisee Claims
To conclude this four part presentation, Michael Einbinder explains franchisor claims including royalty claims and liquidated damages. He also discusses franchisee claims, such as FSA claims and breach of contract, and talks about civil remedies, litigation and arbitration.
Also see:
- Franchise Law Overview
- Services For Franchisors
- Services for Franchisees
- Franchise Dispute Resolution: Litigation, Arbitration & Mediation
- Representative Franchise Systems
- Franchise Real Estate
- Franchise News / Case Notes
- Franchise Articles & Media
- Franchise Resources
- Franchising Successes
- Bankruptcy and Franchising
- Franchisee Associations and Groups
- Commercial Litigation
- Business Law
- Real Estate
For questions or additional information about Einbinder & Dunn's franchise law services, please contact Einbinder & Dunn by clicking here to fill out a contact form or by calling 866-490-4909 or 212-391-9500 to speak with one of the firm's partners.
Julie Lusthaus was interviewed on WVOX 1460 AM by Marsha Gordon, President and CEO of The Business Council of Westchester about issues in franchising.
