Territorial Protection and Franchisee Expansion

Franchise Services

With the increasing pressures from competitors, many franchisors try to increase the number of units that they have, often at the expense of existing franchisees.  Frequently, clients come to us and complain that they have built up the brand’s business in their territory over five, ten or more years and that now the franchisor or supplier is putting in new franchises in a way that is taking away the goodwill that they have built up.  In other cases, franchisors try to keep franchisees from expanding, even though the franchisor had promised they could do so.

Dady & Garner franchise attorneys have a proud history of fighting franchisors and suppliers on issues of “encroachment” and denial of expansion rights.  In fact, Dady & Garner was a pioneer in fighting a franchisor’s attempt to encroach on franchisees through the use of the Internet, and obtained an injunction against a franchisor using the Internet to take away sales from its franchisee.  Please see our Big Cases - Territorial Rights for further information.