Denver Franchise Lawsuits

Denver Franchise Lawsuits

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Why Franchise Lawsuits Arise Frequently.

Few contracts are as strange as a franchise agreement. In it, you promise to abide by rules you haven't seen, a system you cannot analyze in advance, and obligations which can be changed on you at will. It is no wonder that franchise agreements breed lots of lawsuits. What is worse, the deck is stacked against the franchisee. It is normal to find very inconvenient forum, venue, arbitration and other clauses in the franchise agreements which force you to litigate or arbitrate far away, and compel you to pay the franchisor's legal fees if you lose. Unless the franchisor has misrepresented the franchise in a material fashion at the time of sign-up, or has failed to provide the minor items required of them, suits against them are not propitious. And yet one can see how they might arise frequently. Consider the following.

Denver, Colorado is a mature metropolis with enough population to support a vast number of franchised businesses. As a result, many sectors are overcrowded, such as fitness center franchises and coffee franchises. In these businesses, a franchisee is likely to face extreme competition from day one. Failure often compels the franchisee to cast about for some kind of claim against the franchisor. Normally, this is borne of frustration and disappointment, particularly after seeing the happy success stories and the enthusiastic sales job of the franchisor's reps at the outset of the venture. Franchisors protect themselves against claims relating to misrepresentation by having you sign waivers relating to misrepresentation, or placing clauses in the franchise agreement which say you agree that you have not relied upon any representation of the franchisor in making your decision. These can in some cases be overturned, but it is an uphill battle. Still other franchise agreements contain a limitation on actions for misrepresentation, often requiring you to sue within a year for such claims or lose them. This is why it is imperative to contact a franchise litigation lawyer very early in the process, particularly within the first year if you suspect any kind of misrepresentation. Call us today to discuss your situation. Time is of the essence.

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