Enforcing System Standards
One of the most serious problems facing franchisors today is the failure of franchisees to comply with system standards. Whether it is the quick service restaurant industry or automotive repair business, noncompliance with system standards diminishes brand equity, can lead to negative publicity, and lessens the ability to succeed in today's ultra-competitive environment.
We have assisted our franchisor clients in successfully enforcing system standards for decades. Whether it is counseling clients in developing enforcement programs, drafting critical documents, or going to court to obtain compliance with standards, we have more experience in this area than any law firm in the U.S. In addition to bringing numerous actions to terminate the franchise relationship based on non-compliance with standards, we have also developed an approach to enforcing standards that is fast and cost-effective—filing legal actions seeking injunctive relief and payment of the franchisor’s attorneys’ fees and costs. In our representation of major restaurant franchisors, we have successfully brought close to 1,000 cases for injunctive relief and recovered virtually every penny of the franchisor’s legal fees and costs. Even more importantly, our clients have seen a marked improvement in overall standards compliance.
Develop enforcement programs tailored to individual client needs
Prepare, review and/or revise franchise agreements, notices, and operations manuals necessary for the enforcement program
Develop necessary health, safety, and sanitation standards as required by client’s situation
File actions to prevent franchisee use of unapproved products
Mandate use of new products and participation in new programs
Mandate required remodels and refurbishments
Dunkin’ Donuts Inc. v. Northern Queens Bakery, Inc., 216 F. Supp. 2d 31 (E.D.N.Y. 2001)
Dunkin’ Donuts, Inc. v. Donuts, Inc., No. 99-CV-1141, 2000 U.S. Dist. LEXIS 17927 (N.D. Ill. Dec. 6, 2000)
Baskin-Robbins, Inc. v. A. Ender, Ltd., No. CV-N-99-206-ECR, 1999 WL 1318498 (D. Nev. Sept. 10, 1999)
Dunkin’ Donuts, Inc. v. Kashi Enters., Inc., 106 F. Supp. 2d 1325 (N.D. Ga. 2000)
Dunkin’ Donuts, Inc. v. Albireh Donuts, 96 F. Supp. 2d 146 (N.D.N.Y. 2000)
Dunkin’ Donuts Incorporated v. Priya Enters., Inc., 89 F. Supp. 2d 319 (E.D.N.Y. 2000)