DEALING WITH NONCOMPLYING FRANCHISEES
As franchise lawyers,
we at Kern & Hillman, LLC know a lot about dealing with non-complying
franchisees. However, it is important to understand that compliance
problems are not strictly legal matters. The most important work that
we can do for clients with non-complying franchisees is to help them
identify and resolve specific problems before legal disputes arise.
We help the client with both “The Carrot” and “The
We help franchisors develop Systems to Encourage
and Reward Compliance by Franchisees.
Franchisors who build systems with clear, positive incentives for their
franchisees to keep in compliance can do a great deal to prevent conflict.
We know the great cost in time, energy and, of course, money that the
franchisor incurs when a simple dispute over compliance escalates. We
help clients implement programs to avoid and resolve compliance problems
to avoid litigation.
This is synonomous with progressive disciplinary procedures. In most
franchise systems there are always a few franchisees who simply will
not or cannot comply with their obligations. These franchisees need
to be dealt with firmly, systematically, fairly and aggressively. Disciplinary
procedures have to comply with state laws in many cases. Franchisors
should not take an ad hoc approach to dealing with noncomplying franchisees.
We work with clients to establish procedures for dealing with intransigent
franchisees. This will ensure that your company can quickly, when necessary,
manage noncomplying units effectively. Let us help you put Franchise
Enforcement Systems in place.
In addition to the written policies and procedures which allow companies
to make effective use of The Carrot and The Stick, we work with clients
to use Communication And Publicity
as Compliance Tools in the effort to enforce their franchise standards.
Agreement – A Key To Enforcement Of System Standards
Of course, as franchise attorneys, we provide clients with Franchise
Agreement Clauses for Practical Enforcement. We draft strong, enforceable
Franchise Agreements for
New Franchisors, but if you already have a franchise agreement we
can counsel you about changes and additions to Enhance
Your Enforcement Capabilities.
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