Distributor and Franchise Lawyers
Cantrell Schuette is nationally renowned as the “go-to” law firm for established and aspiring franchisees and distributors, especially for dispute resolution, arbitrations, and trials. Our franchise attorneys provide a turnkey solution for franchisees and distributors nationwide.
Award Winning National Franchise Attorneys
Cantrell Schuette is a recognized leading law firm for representing franchisees and distributors in the US and internationally. We have nearly two decades of experience in representing such clients. We are actively involved in Franchise and Dealer Associations. We also lobby on behalf of state and federal lawmakers to help improve and protect the rights of franchisees.
While some franchisees enjoy their franchise experience and are partnered with franchisors that help their franchisees to succeed and be profitable, unfortunately there are ever increasing predatory practices by franchisors. We have a franchise lawyer practice group who dedicate much of their career to protecting and advocating for aspiring and established franchisees. We provide guidance on virtually every type of franchise issue and dispute.
Our franchise attorneys in our practice group are elite. They attended top law schools, graduated in the top of their law class, have many industry-specific experience, and continually provide continuing education to industry insiders and even other attorneys on franchise-related topics. This is why we are trusted by franchisees of a substantial number of brands across many industries through the US and internationally.
Contact us today at 1-877-858-6868 or coorrdinator@caklegal.com.
DISPUTES WITH FRANCHISORS OR VENDORS
At Cantrell Schuette, we exclusively represent franchisees, not franchisors. We are retained nationally and internationally for representing franchisees for legal disputes. In this regard, our experience and results are unparalleled. Our bench of franchise attorneys are nationally renowned litigators and trial attorneys. Below are some of the common litigation services we provide to franchisees:
- Franchisee representation in pre-suit required mediations, arbitrations, and state and federal courts nationwide and internationally.
- Franchisee representation with claims relating to termination rights, intellectual property, restrictive covenants, and royalty/fees.
- Franchisee representation with claims against franchisors for fraud or mismanagement relating to marketing-funds, encroachment, cannibalization, breach of good faith and fair dealing, fraud in the inducement, fraudulent concealment, and breach of contract.
- Franchisee representation with claims against franchisors for statutory violations of state and federal franchise laws, including class and mass actions, i.e., representing groups of franchisees against a common franchisor.
- Representing franchisee owners in shareholder and partnership disputes and employment disputes.
We understand that franchisees often do not have the same financial resources as franchisors. We therefore often offer alternative fee structures, betting on ourselves and our clients. These fee structures include customized alternative blended fee arrangements, flat fees, success fees, and other results-driven incentives. Few firms offer alternative fee structures, especially for franchisees. But we believe it is important to align our interest not with billable hours but with results.
ADDITIONAL FRANCHISEE LEGAL SERVICES
In additional to our nationally recognized franchisee dispute resolution practice, we also provide many turn-key solutions for our franchisee clients, for example:
- Represent aspiring or expanding franchisees with due diligence and negotiations, including review and guidance on Franchise Disclosure Documents (FDDs), Franchise Agreements, Personal Guarantees, other governing documents, as well as state registration and franchisor, commercial lease, and supplier negotiations.
- Draft, advise, and negotiate business-related agreements often needed for franchisees, including operating agreements, shareholder agreements, employment agreements, and company policies and procedures.
- Provides day-to-day employment and HR guidance to established franchisees.
We’ve represented franchisees in virtually every industry, including for example restaurant, hotel, home services, fitness, foods, and e-commerce.
FRANCHISE LAWS
Franchisors and franchisors must regularly navigate many types of laws. For example, franchise-specific laws include the Federal Trade Commission’s (FTC) Franchise Rule and state franchise laws. There are also non-franchise-specific laws that impact franchises, such as employment laws, intellectual property laws, restrictive covenant laws, and contract laws.
Franchises are subject to both federal and state law. The FTC sets the basic rules that franchises must follow under the FTC Franchise Rule. While the FTC Franchise Rule sets the floor for legal compliance, states may also impose additional laws. Nearly half of the U.S. States have franchise-specific laws. Franchisors and franchisees must also comply with a myriad of other non-franchise-specific laws.
Franchised businesses usually fall into one of three types of categories:
- Distributorships. This is where a franchisor licenses another person to sell the franchisor’s product exclusively.
- Business format franchises. This is where the franchisee operates a business under the franchisor’s trade name and is generally required to follow the franchisor’s standardized operating procedures.
- Manufacturing franchises. This is where the franchisor provides the franchisee with the ingredients or formula for a particular product that the franchisee will manufacture.
We provide guidance and litigation services for virtually every franchise legal matter.
The Franchise Disclosure Document
The FTC Franchise Rule requires franchisors to provide prospective franchisees with certain legal disclosures. The required disclosures are contained in a document known as a franchise disclosure document (FDD). Unless an exemption applies under the FTC Franchise Rule, the FDD must comply with certain content and timing requirements. While there are no registration or pre-approval requirements under the FTC Rule, certain states do impose such requirements.
Employment Laws
Franchisees are most often also employers. As a result, they must comply with federal and state employment laws. At Cantrell Schuette, our attorneys who handle franchise law are also fluent in employment laws, including advising and litigating on the following employment law issues as part of our employment law practice:
- Wages and overtime rules
- Executive compensation agreements
- Severance agreements
- Discrimination and retaliation laws
- Family Medical Leave Act and other leave laws
- Restrictive covenants, including non-competes, non-solicits, and non-disclosures
Simply put, we have deep experience with virtually every employment law matter imaginable. With respect to employment law, our clients include not only franchisors and franchisees, but also c-suite executives, top sales professionals, and other highly compensated individuals.
Intellectual Property and Restrictive Covenants
The bedrock of any franchise relationship is the agreed use and protection of intellectual property and trade secrets. We are regularly hired to advise, draft, and litigate franchise-related intellectual property, trade secrets, and restrictive covenant disputes. Examples include:
- Registration of trademarks and drafting policies to protect intellectual property.
- Drafting policies to protect trade secrets and advising on best practices.
- Drafting reasonable restrictive covenants.
- Representation in lawsuits and arbitrations involving franchise-related disputes, including but not limited to alleged trademark infringement, breach of contract, and restrictive covenants.
If you are a franchisee or aspiring franchisee, contact us for a no-cost initial consultation at (877) 858-6868 or coordinator@caklegal.com.
Contact Us for Your Franchise Law Needs
Cantrell Schuette are legal specialists in franchise law and represent franchisees and distributors. We’ve dedicated a substantial portion of our practice to protecting the rights of and advocating on behalf of the interests of franchisees and distributors.
If you are a franchisee or aspiring franchisee, or a distributor, and need legal assistance, please contact us at 877-858-6868 or coordinator@caklegal.com.