Lawsuits in the business world are pretty commonplace. Some of biggies like BP and Enron come to mind, along with Microsoft and Apple. Corporate lawyers shuffle a lot of paperwork around, sometimes for years.
In the franchise business world, lawsuits happen, too. Sometimes franchisees sue franchisors. Franchisors sometimes even sue franchisees. Sometimes, the parties settle. For a lot of money.
Part of your franchise research should always include finding out about any legal issues that the franchisor you’re thinking about partnering with is experiencing. Use a franchise attorney.
Maybe you can avoid some legal storms…
The Quiznos sandwich chain has been in the news a lot, but not because it’s sandwich recipes have been stolen. Lots of lawyers are making lots of money because of Quiznos. Read about Quiznos lawsuits.
A gentle tip from The Franchise King®:
Do not buy a franchise until you know EXACTLY how to do thorough research.
Learn how here
Sometimes, the threat of a lawsuit, (even from an angry diet-conscious lady or two) is enough to cause huge franchises like McDonald’s too freak out a bit. Read about the McDonald’s Happy Meal Lawsuits.
Franchisees do get sued. These charming folks allegedly used marketing money to help pay for their kids education. Read about these Dunkin’ Donut franchisees.
Finally, if there was a way to avoid a lawsuit, would you want to know “how to do it?” Read about those Darn Franchise Lawsuits, which includes some great tips.