Franchise relationships in the business world can be a great opportunity for all involved parties. The seller of the franchise can earn relatively passive income while allowing their intellectual property to gain greater exposure in the marketplace. On the other side of the relationship, franchisees can start a business with an established business model and guidance as to how to earn a profit.
As with any other business arrangement, conflicts in the franchisor-franchisee relationship are common. Most often, these take the forms of contract disputes where one party alleges that the other failed to uphold their end of the contract.
A Minnesota franchise disputes lawyer could help identify any potential causes of action that may give a party a right to demand enforcement of a franchise agreement in court. A dedicated business litigation attorney can then work to protect a party’s interests every step of the way towards reaching a beneficial outcome.
Common Reasons for Disputes in Franchises
A franchise relationship gives both parties certain rights and obligations under the terms of the agreement. At their heart, franchise agreements are contracts that create a legal basis for both parties to expect certain benefits and requires them to give something to the other party.
In general, a franchisor gives a franchisee the right to use their intellectual property. This can include a business model, the right to sell a product, and the use of trademarks. A franchisor may also take on the responsibility to provide training, advertising, and guidance as to how to get the business off the ground.
In exchange, the franchisee pays a fee for these rights. This includes an upfront payment and may include a percentage of profits. The franchisee also assumes an obligation to follow the terms of the contract concerning training and proper use of intellectual property. A Bloomington franchise disputes lawyer could help identify the obligations of all parties to a franchise agreement and determine whether one party violated those terms.
Protecting a Party’s Rights in Bloomington Court
Instances of franchise disputes may end up in court. If settlement talks and demand letters fail to bring the dispute to a fair resolution, an aggrieved party may ask a Bloomington civil court to hear the case. This is possible because civil courts have the jurisdiction to hear claims that allege breach of contract. According to Minnesota Statute §541.05, plaintiffs have up to six years following a dispute to ask a court to intervene.
A Bloomington franchise dispute lawyer could help franchisors and franchisees take the necessary steps to protect their rights in court. If a company needs to initiate a lawsuit, an attorney can help file an initial complaint, discover all relevant evidence, and argue in court why the other party is in breach of the franchise agreement.
Alternatively, an attorney can help to defend parties against allegations of violations of a franchise agreement. In either scenario, a Bloomington franchise disputes lawyer can work to protect the legal rights of companies both in and out of the courtroom.
A Minnesota Franchise Disputes Attorney Could Be an Advocate
Disputes in the world of franchises are common. One party may believe that the other has not provided essential support as required by the franchise agreement. In other cases, the franchisor may not have received all payments as required by contract. If settlement talks and negotiations fail to resolve these disputes, a case may end up in Bloomington civil court as a breach of contract case.
A Minnesota franchise disputes attorney could help protect your legal rights in case of these disagreements. They can handle the case through every phase of litigation. For the help you need, call today.