Does anyone know how to resolve a franchise dispute?

Hello. I am a franchise specialist attorney.

While running a franchise business, franchise disputes often arise due to conflicts with the franchisor or contract violations.

As in your situation, the franchisor's non-performance of contractual obligations is a clear contract violation, and there are several legal methods to resolve this.

I will summarize them step by step below for your reference.

1. Verify contract and franchise agreement contents
First, you should carefully check the franchise agreement, the contract documents, and the operations manual.
If the contract specifies the obligation to supply twice a month and the franchisor has violated this, it can be grounds for damages claims and contract termination.

2. Sending content-certified mail
You can formally raise an objection to the franchisor through content-certified mail by proving the contract violation, and demand a refund of the franchise fees.
Content-certified mail is used as important evidence in future legal disputes.

3. Application for franchise business transaction dispute mediation with the Fair Trade Commission
For franchise disputes, you can apply for mediation through the Franchise Business Transaction Dispute Mediation Council of the Fair Trade Commission.
This system mediates disputes between franchisees and franchisors quickly and without cost burden, and if an agreement is reached, legal enforceability arises.

4. Lawsuit for damages
If the loss of sales due to supply delays is large or the franchisor's contract violations are repeated, you can file a damages lawsuit in court.
In this case, you must secure evidence of supply delays, sales decrease records, and related contracts and content-certified mail to be at an advantage.

Franchise disputes, unlike ordinary civil disputes, are complexly intertwined with the Franchise Business Act, the Fair Trade Act, and special provisions of franchise contracts, so the assistance of a specialized attorney is essential.

This is because in the process of negotiation, mediation, and litigation with the franchisor, you must properly organize legal logic and evidence to respond, in order to maximally protect the rights of the franchisee.

If you wish, attorneys at Daeryun Law Firm who have resolved many franchise dispute cases can consult with you directly, so please feel free to contact us at any time.