Miami, FL commercial litigation attorney Robert Zarco talks about the issues and disputes that commonly give rise to franchise litigation between a franchisor and its franchisees. He explains that at the firm, franchise litigation is treated as a last resort when seeking remedies for disputes between franchisors and franchisees. The firm prioritizes resolving conflicts through alternative methods, such as face-to-face meetings, settlement conferences, or mediations, before resorting to litigation. However, when these approaches fail to achieve a satisfactory resolution, litigation becomes the necessary course of action.

He notes that franchise litigation can involve a wide array of legal claims. Declaratory actions may arise when there is disagreement over the interpretation of contractual provisions or the expectations placed on the franchisee. Breach of contract claims occur when one party fails to meet its obligations under the agreement. Breach of the implied covenant of good faith and fair dealing is another common claim, reflecting the expectation that neither party interferes with the other’s ability to benefit from the contract. This is generally implied in most states but often linked to express contractual provisions.

Other claims may include fraud, negligence, statutory violations, deceptive and unfair trade practices, and breaches of state pre-sale disclosure statutes. Some states also have specific franchise relationship laws, and violations of these statutes can form the basis for legal claims. The specific nature of the claims depends on the circumstances and issues unique to each case.