Collaborative Law: A Different Approach for Solving Franchise Disputes

Abstract

For the past 17 years, I have been a trial lawyer representing franchisees in disputes with their franchisors. The vast majority of those cases have involved groups of failed franchisees in systems in distress or collapsing. Those cases have given me the opportunity to obtain internal documents from several large franchisors which detail the manner in which relations with the franchisees have deteriorated over time. In most of those cases, the benefit of hindsight has allowed us to identify points in time in which much earlier intervention could have salvaged the franchise relationship and given the franchise system the ability to stabilize. In this article, I discuss the value of trust in the franchise relationship, analyze how implicit expectations set the stage for conflict, review how disputes are often addressed, and recommend an alternative approach for solving franchise disputes.