Franchise Attorney in New York, New York
What advice do you have for clients who are in a franchise dispute?
What advice do you have for clients who are in a franchise dispute?
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well the advice really applies at least
on certain levels to both franchisors
and fight franchisees so the first thing
is you want to make sure that you’ve got
all your documents and counselor wants
to see all the documents they want to
see all the emails they want to see all
the communications everything that each
side has that may relate to the
possibility of a dispute that’s crucial
you want to make sure you’ve got
access to all of that we also tell uh
both sides but particularly franchisees
do not be in default franchisees may say
why do i have to keep paying the royalty
i have these guys haven’t done anything
for me and we always say
pay the royalties you want to be wearing
the white hat not a gray hat and
certainly not a black hat no defaults
and then the last and probably the most
important thing we say is
if you can find a way to resolve this
dispute pursue it whether it’s
negotiating or mediating try to avoid
getting into litigation or arbitration
because
there’s no turning back once you do that
it’s time it’s money and there’s no
certainty you’re not in control of
whether you win or lose there’s going to
be an arbitrator or a judge or a jury
making that decision so if there is a
reasonable way to settle settle
New York, NY franchise law attorney Richard L. Rosen shares his advice for clients who are in a franchise dispute. He advises that this guidance applies to both franchisors and franchisees. First, it’s essential to gather all relevant documents—emails, communications, and anything that could relate to a potential dispute—so that counsel has complete access. He also emphasizes, particularly to franchisees, the importance of avoiding default; even if they feel the franchisor hasn’t fulfilled obligations, they should continue paying royalties to remain in the “white hat” and not risk being in a gray or black position. Finally, he stresses that if a dispute can be resolved through negotiation or mediation, it should be pursued, because once a case goes to litigation or arbitration, time and money are spent with no certainty, and control over the outcome is in the hands of a judge, jury, or arbitrator.
