Franchisee Associations & Franchisee Groups

Franchisee Associations

Sometimes, in order to level the playing field, it is in the best interests of franchisees to organize themselves into a franchisee association. Working together with other franchisees offers many benefits:

• Ability to communicate more effectively with the franchisor
• Enhanced leverage in negotiations with the franchisor
• Potential to negotiate more favorable terms with outside vendors and contractors
• Opportunities to exchange business-building ideas with other franchisees

Einbinder & Dunn has extensive experience effectively representing the interests of such associations. The firm provides counsel in:

• The creation of the association and the formation of the organizational structure
• Negotiations with the franchisor concerning system-wide issues
• Negotiations of renewal agreements
• Litigation, arbitration and mediation services regarding disputes with the franchisor and/or suppliers
• Negotiating of third party agreements

Learn more about setting up a franchise association by reading "So You've Bought Your First Boat: Forming An Independent Franchise Association...A Turnkey Approach".

Franchisee Groups

There are times when a group of franchisees may wish to address some concerns under a less formal structure. Such situations occur when a number of franchisees have very specific issues not relevant to the franchisee association as a whole or when there is a disparity between the group and the position of the association.

Forming such groups, whether they consist of two, three or more members, means franchisees can address their concerns in the manner of their choosing and without association approval. It also affords franchisees the opportunity to share all related costs.

Einbinder & Dunn has worked with franchisee groups of all sizes and is well-qualified to assist such franchisees in addressing particular issues. Such an approach has proven to be quite cost-effective for franchisees who have elected to go down this path.In addition, there are times when a group of franchisees may wish to address some concerns under a less formal structure. Einbinder & Dunn is well-qualified to work with those groups of franchisees who seek legal counsel and/or resolution to a particular franchise-related issue.

For more information on how Einbinder & Dunn can provide efficient and cost effective legal service for franchise or franchisee association, please contact Einbinder & Dunn by clicking here to fill out a contact form, or by calling 212-391-9500 to speak with one of the firm partners.

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