What can I do if my franchisor broke the agreement?

March 28, 2015

When you sign a franchise agreement, you plan to uphold it, and you expect the franchisor to do the same. Unfortunately, franchisors sometimes breach the contracts they enter into with franchisees, and beyond annoyance, this can result in serious financial detriment to a small business owner.

If a franchisor has breached its contract with you, then speak with an experienced franchise law attorney to learn about your legal options for protecting your rights. A contract breach has occurred if the franchisor has done things that the agreement doesn’t allow, or if the franchisor has failed to do what it promised. For example, a breach may have occurred if the franchisor does any of the following:

  • Burdens you with requirements that were not covered in the agreement you signed
  • Changes the way it conducts business with you
  • Fails to provide the training and support you were promised

An agreement between you and the franchisor doesn’t necessarily have to be in writing for a breach to occur. The franchisor might have made certain promises, or you and the franchisor might have carried on a certain kind business relationship for a number of years, and now the franchisor is doing something different. In any case, a franchise law attorney can assess and investigate your case, and fight to protect your rights.

Depending on the specific circumstances, it may be possible to get you out of the contract, get the franchisor to start meeting its obligations, or get you an award of damages. The goal in any case is to reach a cost-efficient solution.

In representing and advising franchisees, the lawyers of Garner, Ginsburg & Johnsen have gone up against some of the biggest names in franchising. To learn more about our nationwide, Minnesota-based practice, please visit our franchising law overview.