A: If you are a franchisee in New York, and your franchisor has failed to uphold some part of the franchise agreement, it is never a good idea to withhold your franchise royalty payment. In fact, it is never a good idea to withhold your franchise royalty payment. By withholding this payment, you will only cause a deeper rift between you and the franchisor.
Although this may seem unfair, a royalty payment cannot be used as a weapon in a franchise dispute. Courts have refused to let this type of action become legitimate. In any case, the withholding of a franchise royalty payment would violate the terms of your agreement, and could allow the franchisor to take punitive action against you.
In fact, even when there is a revolt among a number of franchisees, those franchisees cannot withhold their royalty payments together. Such an act may be a violation of U.S. antitrust laws, in some cases.
Therefore, if you have become involved in a dispute with a New York franchisor, you should immediately get the professional help of a New York franchise lawyer. A New York franchise lawyer may investigate your case, and advise you on the best course of action to take.
Rather than withhold a franchise royalty payment to settle a dispute, you may choose to:
In court, your New York franchise lawyer may represent your legal interests.
Contacting a New York Franchise Lawyer
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