Minneapolis franchisee lawyer Ron Gardner describes when a franchisee might be able to recover the value of what was lost after a termination.
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Oftentimes people come to us either after they have already been terminated or ultimately they decide look, I don’t really want to stay in business with these people but I don’t want to lose everything that I’ve put into the business. And so the question comes up if I am terminated can I get back what I put in? And frequently the answer is yes. It’s not typically an easy road because franchisors aren’t in the habit of just writing checks and saying thanks, particularly if the termination has been, at least in the franchisors mind, because of the franchisee’s default. But there are lots and lots of avenues in which franchisees can pursue compensation for the loss of their business. The contract there may be breaches of the contract, there may be breaches of common law, there may be breaches of state law and state regulations, antitrust laws may have been violated. There’s all sorts of avenues that we examine when we are asked on behalf of a terminated franchisee to try and recover the value of what it is that they have lost. And so the answer is probably. That we will probably be able to work something to get you at least some of what you’ve put in and maybe all. And that’s certainly our goal in every case, can’t say that it works in absolutely every case but it is what we try and do is make people whole when they have been terminated. Particularly if we can find a way to color that termination as being unlawful or in violation of the contract or the covenant of good faith and fair dealing, which is implied in virtually all contracts in the United States.