Florida Dispute Resolution

The potential for conflict exists in any business endeavor, and franchises are no exception. Whether in dispute with a supplier, between franchisor and franchisee, with competitors in the industry or over use of a franchise trademark, an attorney well versed in franchise law can not only save time in dispute resolution, but also minimize stress and costs. There are numerous sources for conflict.

Franchisee Disputes with their franchisor may arise during the sales and development stages of the franchise relationship and revolve around:

• Fraud and misrepresentation
• False claims regarding earnings or start-up costs
• Disclosure violations
• Site selection and assistance
• Construction cost projections
• On-going support and training programs
• Trademark or service mark protection
• Lack of good faith and fair dealing

Franchisor Disputes - with franchisees may be based on the following:

• Violation of set standards
• Underreporting of sales
• Failure to pay fees when due
• Breach of contract
• Supply or distribution issues
• Renewal
• Relocation
• Termination

Other Sources of Disputes and Risks:

• Retail Customers
• Shareholders and Investors
• Federal and State Regulators

Having worked with both franchisors and franchisees for years, our attorneys have gained an in-depth perspective of both sides of the fence. We not only have an extensive understanding of all applicable franchise regulations, laws and court rulings, but also have gained valuable insight and judgment on where the lines get drawn before litigation becomes the only recourse. Our first priority is understanding our clients’ business needs and objectives. We provide continuous risk assessment and adjust strategies to maintain alignment with business perspectives. We work with clients to manage risks by leveraging our years of experience representing insurance companies and negotiating the acquisition of and coverage under a variety of insurance policies.

At Protonentis & Remley we evaluate all available avenues to dispute resolution, which includes negotiating innovative business solutions and two of the most common alternative dispute resolution or ADR processes, mediation and arbitration. A fourth approach is traditional litigation involving courtroom trial by judge or jury, the need for which varies on a case-by-case basis.

There is a right time and place for all of these dispute resolution approaches and a seasoned franchise attorney has the finesse to artfully put in play the approach most suitable, based on the nature of the dispute and details of the situation.

Business Solutions

Because of our experience in representing franchisors, franchisees and other product distribution businesses, we immediately search for the common ground that could make sense to both parties. We believe in the power of communication and honest face-to-face discussions, wherever they need to occur.

Mediation

While sometimes confused with arbitration, mediation does bear similarities, but is actually a quite different approach to dispute resolution. Mediation is often the first alternative dispute resolution method attempted, even when a franchise agreement specifies disputes must be resolved through arbitration. Mediation is less formal than arbitration and non-binding in that a mediator is not authorized to decide facts, make rulings or issue awards. The mediator facilitates discussion, allowing both parties to air their views, and directs them toward amicably resolving their dispute. While there are exceptions, most information disclosed during mediation is held confidential.

The advantage of mediation over arbitration and litigation is more latitude to discuss, devise and create viable business solutions. Mediation can often be completed in a day and is far less expensive than arbitration or litigation. Typically, a mediator begins by bringing together both parties to the dispute and listening to both sides of the story, including their respective complaints, perspectives and desired objectives. Then the mediator will usually begin a shuttle diplomacy process by meeting with each party individually to help them explore options and arrive at a compromise that will end the dispute.

However, not all mediation leads to resolution, and in some situations it may only be an intervening step to arbitration or litigation. There are circumstances where mediation may not be the most effective or quickest means to resolving a dispute. Mr. Protonentis was trained in Civil Circuit Mediation at the University of South Florida and has mediated complex disputes between franchisors and franchisees to successful resolution. In the right situation his mediation skills have spared both parties from costly arbitration or litigation proceedings.

Arbitration

Traditionally, arbitration is a confidential process that is less formal than a courtroom trial while using some of the same procedures, scaled down. While less extensive, the arbitrator hears testimony, examines evidence and parties share discovery with each other. Arbitration is an adjudicative rather than advisory process as in mediation. At the end of the hearing, the arbitrator delivers a final ruling awarding liability and damages, which once confirmed by the court, can be entered as a final judgment.

Litigation

In some instances, ADR may not be an option and a well-conducted courtroom trial adhering to formal rules of evidence may consume less time, and a judge or jury may offer better protection for a client’s rights and be more inclined to render a favorable ruling.

At Protonentis & Remley, our attorneys are experienced in developing effective strategies to manage the risks of significant litigation, regulatory matters and class action lawsuits.