Mergers and Acquisitions

Franchise Services

The merger or acquisition of a franchisor or supplier is usually a matter of great concern for existing franchisees or dealers.  It may mean that two competing systems are now going to exist as one and raises questions such as:  Will one of the systems be phased out?  Will I be forced to compete against myself?  Will my biggest competitor now be able to go after my customers or know my trade secrets?  On the other hand, sometimes a merger or acquisition can be a blessing:  A faltering franchisor or supplier may be acquired by a stronger company that can lead everyone into a better day.

At Dady & Garner, each franchise attorney has substantial experience in dealing with groups of franchisees and dealers in merger and acquisition situations.  We have brought lawsuits challenging the right to go through with a merger or acquisition, which have led to negotiations between the franchisees and the acquiring company that recognized their rights; we have won decisions establishing that a company acquiring a franchise company must exercise due diligence and cannot ignore the rights of existing franchisees; and we have established and implemented effective strategies beyond simple legal strategies (such as media or legislative campaigns).  Please see Big Cases – Mergers and Acquisitions.