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. In their approach to dispute resolution, the law firm views franchise litigation as a final recourse when seeking remedies for conflicts between franchisors and franchisees. The firm consistently emphasizes the exploration of alternative methods to resolve disputes before considering litigation. While initial efforts include face-to-face meetings, settlement conferences, or mediations, there are instances where these methods prove ineffective in achieving the desired resolution, prompting the consideration of litigation.

The spectrum of legal claims in franchise litigation is extensive. Declaratory actions may arise in cases of disagreement over the interpretation of contractual provisions or franchisee expectations. Breach of contract provisions may be employed when one party fails to meet their contractual obligations. The breach of the implied covenant of good faith and fair dealing is another facet, with parties expected not to disrupt each other’s ability to benefit from the contract. Although this is typically implied in most states, it is often tied to an express provision in the contract. Legal claims in franchise litigation may include fraud, negligence, statutory violations, deceptive and unfair trade practices, and breaches of state pre-sale disclosure statutes. Additionally, specific states may have franchise relationship statutes, violations of which can lead to legal claims. The nature of these claims is contingent on the unique issues involved in each case.