Our Practices

                                                                                                                 

Dispute Resolution

  • Consult with a Franchise Law Attorney

    Not sure where to start? The franchise attorneys at Fahey Schultz Burzych Rhodes can review your business plan and provide legal guidance based on your current situation and your long term goals.

    If you have any questions regarding the best course of action, please request a franchise consultation with one of our attorneys.

Franchise Audit

The royalty income stream is the main source of profit for franchisors. Franchisees who intentionally underreport gross sales to avoid royalty fees are not only in breach of contract, but are also minimizing profits for the entire franchise system.

For decades, our franchise attorneys have been involved in addressing cases of misreporting and intentional underreporting by franchisees. We can take legal action to enforce a franchisor’s rights relating to intentional underreporting. Strong enforcement is key to maintaining the integrity and compliance of the franchise reporting system.

A well-written franchise agreement reserves to franchisors the right to conduct audits to ensure that franchisees are accurately calculating their royalty fees and other obligations. Underreporting may be uncovered by the franchisor during a routine audit, or in another instance, the franchisor may suspect the franchisee is not being honest and further verify the franchisee’s activity by an audit undertaken pursuant to the franchise agreement. We encourage clients to conduct periodic audits of their franchisees and have relationships with accountants capable of facilitating audits. Done consistently, audits can benefit both franchisors and franchisees alike by encouraging honest reporting.

Franchisors owe it to themselves, their investors, and all their franchisees to ensure full compliance. Whether you have an alleged case of underreporting or need someone to draft a franchise agreement, our franchise attorneys are ready to talk.

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.