Franchise Litigation: Understanding the Role of Discovery in Franchise Litigation

• For Franchisors:  Persistence matters.  Far too often litigation counsel overlooks the value of persistently and diligently pursuing discovery.  That is, discovery must include indepth demands.  Detailed interrogatories (written questions that the franchisee must answer) that force the franchisee to describe and identify their alleged damages and claim against the franchisor, are critical.  Many times franchisee counsel is not prepared to respond.  Another good point raised by this case is persistence regarding the enforcement of discovery obligations.  So, separate and apart from the inherent point of discovery (i.e., to obtain information) there is tremendous litigation strategy and value to pursuing a detailed and diligent discovery plan - one benefit being that the Franchisee cannot sustain its claims.

• For Franchisees:  When faced with franchisor litigation, it is critical to allocate the right financial and legal resources.  Understand that the "franchise litigation process" is extremely important and extensive - that is, you can not ignore discovery and you must plan out your claims and defenses on solid "franchise factors" that are recogized by the courts.