OUR BEST FRANCHISE RESULTS
Over the past three decades, the attorneys at Garner, Ginsburg & Johnsen, P.A. have built a reputation as some of the best franchise attorneys by helping hundreds of franchisees and dealers resolve their problems with their franchisors or suppliers.
Fraud and Breach of Franchise Agreement
Court grants rescission of franchise agreement in favor of franchisee. Our client, a franchisee of Bubbly Paws Franchising LLC, faced multiple franchise law violations by their franchisor, so we filed a lawsuit on their behalf. The court found that the franchisor made material misrepresentations, failed to disclose information required under franchise law, and breached its obligations under the franchise agreement. Our team obtained a judgment rescinding the franchise agreement, effectively nullifying it as though it had never been signed, allowing our client to operate independently outside the franchise system.
Stopping Terminations
KFC stopped in its tracks. A long-term KFC franchisee in New Jersey received notice from the franchisor that its franchise was not going to be renewed unless it tore down its existing store, found a bigger location, and built a new and expensive unit. But real estate was prohibitively expensive and zoning laws made installation of a new unit difficult. In fact, the existing unit was doing well. The franchisee contacted the best franchise lawyers at Garner, Ginsburg & Johnsen, P.A. before the non-renewal date came. Michael prepared papers to stop the non-renewal under New Jersey’s Franchise Act and served them on KFC. The next day, the franchisor backed down. The franchise was renewed and the franchisee continued operating in the same location.
Terex heavy equipment termination halted. Our client, a dealer in Terex heavy equipment in Pennsylvania, with operations in several other states, was faced with a termination notice from Terex that threatened the entire business. We prepared and filed papers for a temporary restraining order and preliminary injunction. The supplier, Terex, brought in a battalion of lawyers; the court held a two-day trial that culminated in the cross-examination of Terex’s executives. Result: the termination was enjoined and the business was saved.
Lund Boats’ plans to terminate get sunk. Our client, one of Iowa’s largest dealers in Lund Boats, got a surprise visit from the company: a hand-delivered notice of nonrenewal that said the dealership was ending on 30 days’ notice. We looked at the law carefully and concluded that Lund was a franchisor under Iowa and Minnesota law and that those laws prohibited Lund from attempting to terminate without good cause, prior notice and an opportunity to cure. After filing papers to stop the termination and engaging in intense documentary discovery and depositions, Lund backed down and allowed our client to continue as a dealer.
Life after dark. Our client, a real estate franchisee, was terminated for failing to pay fees. It turned out, however, that the fees were incorrectly charged. After engaging in negotiations with the franchisor, we were able to get the franchisee fully reinstated.
Uncovering Fraud and Recovering Damages
Our clients purchased franchises from a franchisor that boasted about its name recognition, special software, and wealthy investors. But when our clients went to open their franchise, they discovered that the “software” was nonexistent; our investigation found that the franchisor and its “investor” had been defendants in a number of undisclosed lawsuits; and there were in fact seven other companies claiming rights in the franchisor’s brand name. After a lengthy battle, the franchisor and investor settled, and our clients were made whole.
Negotiating Renewal Agreements
Our clients, a group of franchisees from around the country, were coming up for renewal. The franchisor’s new agreement would have imposed many costly requirements on our clients. Using various sources of leverage, we were able to drastically improve the new agreements and reduce the costs and requirements imposed on our clients.