Our Practices

                                                                                                                 

Enforcing Franchise System Standards

Trust is an important component of the franchisor-franchisee relationship. The franchisor has no direct control over franchisees’ management or operation of the business. The franchisor must have confidence that franchisees will manage their business within the proven set of system standards provided. When that trust is broken, it can pose serious challenges. Noncompliance with system standards can lead to the devaluing of brand equity, negative publicity, and stifles the ability to succeed in an ultra-competitive market.

A well-written operations manual helps ensure conformity in appearance and operation of franchised establishments, but only if franchisors enforce the requirements of their franchise agreements and operations manual. Our franchise attorneys understand the importance of protecting the franchise system and brand image that you have worked hard to maintain. Throughout our many collective years representing clients in the franchise industry, we have assisted numerous clients in successfully enforcing system standards across the board. A strong enforcement program is key to maintaining integrity and compliance with system standards.

When a franchisee is uncooperative, it may be necessary to take action. We can help you determine if the violation of system standards warrants default or termination. This is not a decision to take lightly. A franchisor should consult with an experienced franchise attorney to ensure that both the requirements of the franchise agreement and state laws have been met. Our experienced attorneys can help you choose the best course of action to protect your interests. You owe it to yourself, your brand, shareholders, and franchisees to enforce system standards.

Is your business ready to franchise or expand?

Whether you are exploring franchising for the first time or operating a well-developed franchise system, our franchise attorneys can answer your questions and advise you on the best course of action.

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At Fahey Schultz Burzych Rhodes PLC, we’ve been helping municipalities, franchised businesses, employers, and more with their legal needs since 2008. We’d love to learn how we can help you, too.