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Franchise litigation may be a necessary business strategy

On Behalf of | May 17, 2022 | Uncategorized

Many entrepreneurs in the Orlando area opt to start a new business through a franchising arrangement.

Purchasing or starting a franchise can be a great opportunity for a Florida businessperson. When the project goes well, the local investment gets the benefit of an established brand as well as business support from another, larger company.

On the other hand, a lot can go wrong with a franchise, particularly when business does not turn out as expected.

Even after a thorough negotiation, there can be contractual or other disputes between the local operation, or franchisee, and the franchisor. A franchise agreement is, after all, a complicated business contract

These disputes often come with high stakes for Orlando franchisees. Under some circumstances, the outcome may even determine whether a franchisee will be able to continue to operate a business.

Initiating or defending against litigation related to a franchise frequently will be an essential part of a local business’s strategy.

Franchise litigation is often a complicated affair

Even when compared with other commercial disputes, franchise litigation is frequently complicated.

At the local level, for example, the area courts refer franchise disputes to a specialized business court.

The idea behind these specialized courts is to make sure that the judge hearing the dispute understands the nature of both the business world in general and the specific issues at hand in the pending case.

Attorneys who practice in this court also would typically have some additional knowledge and experience with handling commercial litigation.

The business court is able to establish uniform procedures and issue consistent decisions, which give some sense of stability to the local business world.

Even with a specialized court, though, franchise litigation is still unique in many ways.

Someone who is facing a franchise dispute or who feels legal action may be necessary to protect one’s business interests should review the available legal options carefully.