Franchise and Licensing Disputes

Because franchises and licensing are important not only to the participating parties but to the economy at large, disputes concerning them can be disturbing on a number of levels. At Kohan Law Group in Manhasset, our commercial litigation attorneys are well-prepared to assist clients on Long Island and throughout the five boroughs of New York City in coping with the complex issues surrounding franchises and licensing disputes. If necessary,  we are always ready to fight aggressively for their rights in court. 

If you are involved in a franchise or licensing conflict, now is the time to get in touch with our experienced legal team, each of whom has the sharp skills to bring your dispute to a successful resolution. 

Why Are Franchises and Licensing Agreements Pivotal to Business?

Franchises and licensing agreements are vital in expanding businesses since they help to maintain brand consistency and control over how products or services are marketed and sold. Although both legal frameworks allow for business growth, they function differently. A franchise involves a franchisor granting a franchisee the rights to operate under the brand’s trademark and business model, often requiring adherence to specific operational guidelines. 

On the other hand, licensing agreements typically allow the licensee to use a trademark or copyrighted material without the extensive control typical in franchises. Despite their differences, both arrangements are can lead to challenging disputes that make having an insightful attorney essential. 

Types of Franchise Disputes

Pre-sale Misrepresentations

One reason disputes may arise is if franchisors make exaggerated claims or fail to disclose essential information during the initial sales process. In New York, franchisors are required to provide a detailed Franchise Disclosure Document (FDD) which must be clear and comprehensive. Misrepresentations in this document or in sales pitches can lead to legal challenges for breach of contract or fraudulent misrepresentation.

Compliance Disputes

These disputes occur when franchisees fail to comply with the operational guidelines set by the franchisor. This can include issues ranging from use of unapproved suppliers to improper use of brand image. Compliance disputes can severely affect the uniformity and reputation of the franchise, leading to enforcement actions under New York State law.

Infringement of Rights and Privileges

Franchise disputes often involve allegations of unauthorized use of the franchisor’s trademarks or operational model. Protecting intellectual property rights is essential for franchisors, and infringement can lead to significant legal repercussions.

Financial Fraud

Franchise relationships can be jeopardized by allegations of financial improprieties such as embezzlement, misreporting sales for royalty calculations, or other fraudulent financial practices. New York law provides stringent penalties for such fraudulent activities, emphasizing the need for transparent financial dealings.

Termination Disputes

The termination of a franchise relationship can also lead to disputes, especially if one party believes the termination was unjustified. New York State laws governing franchise terminations require that certain conditions be met before a franchise can be legally terminated, providing protection against arbitrary or unfair practices.

Types of Licensing Disputes

Royalty Disputes

Royalties are common grounds for disputes in licensing agreements, especially regarding the accuracy of sales reports and corresponding payments. Disagreements may arise over the calculation methods or the definition of net sales, leading to conflicts that require legal intervention.

Breach of Contract

Breaches in licensing agreements can include unauthorized use of the licensed material or failure to meet other contractual obligations such as marketing commitments or performance standards. Such breaches can undermine the value of the licensed property and necessitate legal action.

Termination Disputes

Termination disputes in licensing can occur when either party seeks to end the agreement prematurely or without adhering to the contract’s terms. Complicated licensing terminations often require careful legal examination to resolve disputes amicably or through litigation.

How Kohan Law Group Attorneys Help Settle Franchise and Licensing Disputes

The attorneys at Kohan Law Group are highly skilled when it comes to dealing with the complexities of franchise and licensing disputes. Our approach involves some or all of the following steps:

Thorough Evaluation

Assessing the validity of the dispute based on the existing agreements and applicable New York State laws.

Strategic Negotiations

Using adept negotiation skills to seek resolutions that protect our clients’ interests without the need for litigation.

Mediation and Arbitration

Offering alternative dispute resolution methods to resolve conflicts efficiently, saving time and resources.

Litigation

When necessary, pursuing litigation to assert our clients’ rights under the full extent of the law, leveraging our extensive experience in commercial litigation to secure favorable outcomes.

Contact Kohan Law Group Now To Protect Your Franchise and Licensing Interests

Negotiating the intricacies of franchise and licensing disputes demands the comprehensive knowledge and well-honed skills of a highly competent commercial litigation attorney. The legal team of Kohan Law Group is equipped to guide you through these challenging disputes with the ease of true professionals. Contact us today to protect your interests and achieve the best possible outcome.