Steps to Take If Someone Breaches a Franchising Contract
If someone breaches a franchising contract, what are the steps that should be taken? Franchising contracts are binding commercial agreements between companies. If something occurs that goes against the terms of the contract, the other party is entitled to compensation for damages or cancellation of the agreement. It’s important to understand how to proceed if you’re involved in a breach of contract. You need to take steps within the window of time allowed by law, which may vary depending on the state where you do business.
Steps to get you started
First, you need to determine the type of breach. A material breach goes against an “essential provision” of the agreement. For example, if your franchisee closes for business on Sundays even though it’s prohibited by the contract, this would be considered a material breach. However, a franchisee who has trouble making sales for a month likely won’t be deemed to have committed a material breach of contract.
After assessing the situation and determining whether the breach is material or immaterial, you’ll need to send written notification within 30 days if it’s considered material. This allows the other party an opportunity to fix it. If the breach isn’t fixed, you may choose to break off commercial relations or pursue damages. You may need to hire a commercial litigation lawyer to represent your company through the court system. The attorneys can help assess the situation and determine how best to proceed. They can also negotiate with opposing counsel if needed. While you should try to avoid getting into legal disputes with franchisees, you will need to know how to respond if commercial relations are severed. A commercial litigation attorney can help ensure your rights are protected.
How commercial litigation lawyers can help in these situations
If someone breaches a franchising contract, commercial litigation lawyers can help assess the situation and advise on what steps should be taken. In some cases, it may be necessary to file a lawsuit to enforce the contract. Commercial litigation lawyers are trained in commercial law which includes commercial disputes such as those that arise from a breach of franchise agreements. Commercial Litigation Lawyers also have experience with contractual issues about various types of contracts including those for franchises. The commercial litigation lawyer has the skills and knowledge to assess breaches of contracts, commercial disputes, contractual issues, breaches of franchise agreements. They will often know how best to proceed depending on the circumstances facing you and your business relationship with the person who has breached their obligations under their agreement with you.
4 tips for avoiding a breach of contract disputes:
- Make sure you fully understand and agree to all terms of the contract before signing it. Don’t make assumptions about what the contract means – always clarify any questions you have with your lawyer.
- Stay alert throughout the length of the commercial agreement to make sure all aspects of the commercial relationship are working well and there is commercial cooperation.
- Make sure to take appropriate steps when you believe someone has breached a commercial contract.
- Make sure to always keep commercial agreements in written form.
When it comes to franchising contracts, any breach of contract can have costly consequences for all parties involved. If you find yourself in this situation, it is important to take swift legal action to protect your rights and interests. A commercial litigation lawyer can help you assess the situation and determine the best course of action.