Franchise & Dealer Disputes
Seyfarth Shaw’s Franchise & Dealer Disputes team includes accomplished litigators who are skilled in effectively and efficiently representing franchise and distribution companies at both the trial and appellate level. Our attorneys have experience handling a broad array of disputes, including actions for:
- Automobile Dealers’ Day in Court Act
- breach of contract
- implied covenant of good faith and fair dealing
- vicarious liability
- fraud and consumer fraud
- earnings claims
- transfer issues
- enforcement of systems standards
- unpaid royalties and advertising fees
- trade secrets
- trademark and copyright infringement
- territorial disputes
- enforcement of termination rights, including restrictive covenants
and registration - disclosure and other statutory violations
Seyfarth Shaw is adept at representing franchisors in a variety of matters unique to their business relationship, for example, when one party allegedly fails to live up to the terms of the franchise/dealer agreement. For franchisors, this can occur when a franchisee fails to pay agreed upon fees or fails to maintain the premises in satisfactory condition. Our attorneys also represent clients when a merger or corporate acquisition impacts the franchise agreement, as well as in disputes involving creditors’ rights, insolvency or bankruptcy.
We are also skilled in handling franchise terminations and resolving issues that commonly arise during the process. Our team is especially experienced in instances when a franchisee continues to use the franchise name or intellectual property, or when key employees form their own business or go to work for a competitor and take with them valuable trade secrets. To avoid such situations, we regularly advise clients regarding best practices for drafting confidentiality, non-disclosure,and non-competition agreements with key employees; training management in how to avoid disputes among employees, customers, and suppliers; and advising clients in how to retain confidentiality by limiting access to trade secrets and other intellectual property.