Association Negotiation
Worked with franchisee association in renegotiating terms of franchise agreement for entire system, allowing for greater cooperation with franchisor.
How to Exit a Franchise
If you are wondering how to get out of a franchise, there are many factors to consider before moving forward. The most important piece is determining the legal basis (or bases), if any, for exiting. The reasons can be fraud, material breach of contract, or statutory claims, and in some cases, the only way out is to negotiate a business resolution (e.g., agreeing to pay a fee to terminate the franchise agreement).
Moreover, most franchise agreements contain non-compete covenants that prohibit the franchisee from working in the same business at the same location for a year or two. Whether you can and how to avoid being trapped by these covenants depends on a myriad of factors and circumstances.
You can’t avoid the covenant by simply “selling” your business to your brother-in-law. You need a strategy to close a franchise and get out cleanly and completely. Additionally, if you try to get out, the franchisor may also contend that you owe it the royalties that you would pay for the remaining years of your agreement. We have helped remove or reduce the amount allegedly owed for these purported ‘lost royalties’ for many clients in a variety of industries.
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Lawyers Who Care
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Successful Representation
We have helped franchisees exit franchise systems across a variety of industries – from retail franchises, to restaurant franchises, to consulting franchises. In many instances, we have also been able to get exiting franchisees out of non-compete agreements, allowing them to continue to ply their trade after termination of the franchise despite franchisors’ attempts to prohibit the former franchisee from operating an independent business.
Results
Startup Helper
Assisted new brewery client to form business entity, comply with securities laws, register trademarks, and negotiate lease.
Selling a Cannabusiness
Litigated and helped resolve an internal shareholder dispute about ownership of a cannabis business.
Testimonial
Elliot Ginsburg has been representing my edibles business in Minnesota since it became legal to sell low-dose hemp edibles. He’s been wonderful to work with and I would highly recommend him to other cannabis businesses. He is quick to respond and will email cannabis law updates that he finds are pertinent to my business.
-Ranelle Kirchner
Testimonial
I had the experience of working with Elliot twice over the past ten years in difficult and contentious situations against a formidable entity. Beyond his great knowledge of franchise law, his thoroughness and attention to detail, and his professionalism, what really stood out and impressed me most was Elliot’s legal advocacy that is second to none. I always felt I was in good hands and I can’t give a higher recommendation!
-Eric Kim
Testimonial
Throughout my time overseeing a PE firm for the past 15 years, I’ve interacted with my fair share of lawyers. While most are decent, it’s rare to encounter those who are truly outstanding. I’m pleased to report that Elliot, Kirsten, and Erin fall into the latter category. My team found ourselves in a particularly complex situation, and Elliot and his team delivered the very best possible outcome for us. They exhibited professionalism, conciseness, and exceptional ease to collaborate with. They swiftly gathered all pertinent information surrounding our issue, assumed control, steering the situation while consistently seeking our input and guidance. If you have any issue with franchise law, you should call these guys. I’m so glad I did.
-Drew James
Testimonial
I cannot say enough good things about Elliot Ginsburg of Garner, Ginsburg & Johnsen, P.A. I retained Mr. Ginsburg in connection with a franchisee matter. Elliot is professional, thoughtful, intelligent, clever, fair and reasonable. His legal work is thorough and well researched and he takes extra precautions to verify factual information. He has the admirable ability of being calm and professional yet firm, even when met with less than professional behavior from opposing counsel. I spoke to many attorneys before deciding to go with Elliot and I know that I made the right decision. I would not hesitate to recommend Elliot (or the firm in general) to anyone needing the assistance of a franchisee attorney.
-Alyson Domoto
Testimonial
I was represented by Erin Johnsen dealing with a successful franchise closure and a lease termination. Erin was very responsive and thorough with both issues. Erin and I reviewed courses of action before moving forward. She listened and gave advice related to risk and exposure of the options we were reviewing. I alway felt that Erin had my best interest in mind when giving me advice on how to proceed. I wouldn’t hesitate hiring Erin again if required. I would recommend Erin as a competent and capable attorney.
-Steven Pierce
Testimonial
I had the pleasure of working with Elliot Ginsburg. He helped me renegotiate and revise a 10-year lease for my coffee shop. I was impressed with how thoroughly and promptly he addressed all of my concerns. He has amazing attention to detail and gave very thoughtful responses to my questions. He even came out to my shop multiple times to get a better understanding of my leasing situation. I would certainly work with him again or recommend him to anyone.
-Caitlin Shrestha
Testimonial
Erin Conway Johnsen helped guide us through a challenging situation with a newer franchise. She was patient with us, listened to our issues and was able to provide work that leveled the playing field with the franchisor. I would HIGHLY suggest her and her team for any challenging franchise situation.
-Paul Rakovich
Testimonial
We consulted with Elliot Ginsburg to help us review and interpret the franchise documents and agreements before investing. He was incredibly helpful and knowledgeable in content and process as well as the legal implications of “common language.” His expertise was critical as we negotiated and maneuvered the process. I am so glad we found Elliot and the firm.
-Mark Mendel
Testimonial
Elliot Ginsburg (Garner & Ginsburg, P.A.) was a beacon of hope to my business/family at a time when our options appeared limited, and the likelihood of a satisfactory resolution seemed to border on the unlikely. He fought diligently and successfully for my rights as a small business-/Franchise-owner and was unwavering in his pursuit of a fair outcome.
Not only was Elliot able to defend my business from unjust accusations, but his calm and empathetic demeanor also offered emotional succor to myself and my situation. My family and I are eternally grateful for his service, and I hereby recommend Elliot Ginsburg (Garner & Ginsburg, P.A.) without reservation.
-Brandon Gruskiewicz