A Franchisee Attorney Who Understands Supplier Restrictions Can Help You Deal With Challenges and Find Solutions
Purchasing a franchise offers several attractive opportunities for people looking to start a business. You have the benefit of starting a business under an established brand with a good reputation and quick access to customers. In theory, you and the franchisor have a mutually beneficial relationship, but sometimes, this relationship can become strained. One of the most common issues we deal with is supplier restrictions, which are limitations on what vendors you can work with and what items you can buy.
A Challenging Dynamic For Franchisees
The franchisor wants to ensure the product served by their franchisees is of uniform quality and at a consistent price. As a result, the franchisor often becomes the sole supplier for various products used in your franchise system or limits the suppliers that a franchisee can utilize. While this may seem to simplify your supply chain and ensure the consistent quality of your product, it can also act to your detriment. You may find yourself stuck using products or services that are of subpar quality or at above-market prices. We can work with you to bring these issues to the franchisor’s attention and negotiate better solutions. Or in some situations, we can litigate those issues by bringing contract or fraud claims based on franchise relationship laws.
Franchisors will always take the position that you are obligated to purchase their products and services according to the terms of your franchise agreement. While this is generally true, this does not necessarily mean that you have no recourse. At Luther Firm, PC, we help our clients successfully resolve issues related to supplier restrictions.
The Value of Working with a Skilled Negotiator
Franchisee attorney Doug Luther previously served as general counsel to a franchisor and has deep experience as a dealmaker in various business contexts. His background gives him a unique insight into how franchisors think, what they are motivated by, what problems they need to solve, and where there is room for negotiation. We start by bringing the issue to your franchisor’s attention and then attempt to negotiate a better solution to the benefit of both parties. Our experience on both sides of the table helps us get results that many others cannot.
When Negotiations Fail—An Attorney Who Understands How to Litigate Supplier Restrictions Can Help Franchisees
Unfortunately, negotiation cannot resolve some supplier restriction disputes. Franchisors will often take the position that the issue is cut-and-dried, but this is rarely the case. You do not have to let your business suffer simply because your franchisor is unwilling to deliver the quality you need for your business to thrive.
We start by reviewing the supplier restrictions in your franchise agreement and operations manual. That agreement may obligate the franchisor to provide products or services of a certain quality. Alternatively, the franchise agreement may not be consistent with applicable franchise relationship laws. Whatever the case may be, we’ve helped our clients successfully resolve supplier restrictions by bringing breach of contract claims, fraud claims, or other claims asserting the franchisor has failed to meet their legal obligations.
A Franchisee Attorney Can Resolve Supplier Restriction Disputes
Supplier restrictions are some of the most difficult challenges franchisees can face. Fortunately, you may have options. If you’re dealing with supplier restrictions, we can review the situation and help you understand your options. Whether you are in Orange County, Southern California, or beyond, contact us to schedule a consultation to discuss your case and how we can help.