Legal Remedies for a Franchise Dispute (Part A)

If you own a franchise in New York, a time may arise when you become involved in a damaging franchise dispute. If it is not possible to settle your differences with the business franchisor, you may resort to litigation. In this case, you will definitely need the expertise of a New York franchise lawyer.

However, because you are basically a business partner of the franchisor, you may want to be careful of damaging the franchisor/franchisee relationship. This is especially true if you want to renew your franchise in New York. On the other hand, certain behavior should not be stood for, and you should put a stop to overreaching abuses by a franchisor.

Possible Setbacks in a Franchise Dispute

When you become involved in a franchise dispute, a claim against a franchisor is difficult to prosecute effectively because the franchisor will have various advantages. One of these advantages is having a legal counsel who is experienced in franchise disputes.

Furthermore, when you buy a franchise in New York, your franchise agreement may require a dispute to be resolved in the franchisor's headquarters, and under the laws of the franchisor's state. And since it was the franchisor who drafted the agreement, it is almost certainly going to include rules written in their favor.

Combating Franchisor Fraud

Common law fraud by a franchisor is difficult to prove. In such a case, you will have to show that:

• the franchisor made a material misrepresentation or omitted to state a material fact;
• the statement was false when made;
• the misrepresentation or omission was knowingly made or made recklessly;
• you relied on the misrepresentation and the reliance was justified; and
• you suffered damages that resulted directly from the franchisor's misrepresentation.

To prove these things in a legal battle with a fraudulent franchisor, your New York franchise lawyer will have to gather evidence. By investigating your case to support your claim, an experienced New York franchise lawyer can help protect your franchise in New York.

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