Is there anyone who knows how to resolve a franchise dispute?

Hello. This is an attorney specializing in franchise matters.

In the course of operating a franchise business, franchise disputes not infrequently arise due to conflicts with the franchise headquarters or breach-of-contract issues.

As in your situation, a franchise headquarters' failure to perform its contractual obligations is a clear breach-of-contract matter, and there are several ways to resolve this legally.

I will organize this step by step below, so please refer to it.

1. Reviewing the contract and the franchise agreement
First of all, you must carefully review the franchise agreement, the written covenants, and the operating manual.
If the contract expressly stipulates an obligation to supply twice a month and the franchise headquarters has violated it, this can be a ground for a claim for damages and for termination of the contract.

2. Sending a certified mail of content
By documenting the fact of the breach, you can formally raise an objection with the franchise headquarters through certified mail and demand the return of the franchise fee.
Certified mail is used as important evidence in the event of a future legal dispute.

3. Applying for franchise business transaction dispute mediation with the Fair Trade Commission
In the case of a franchise dispute, you can apply for mediation through the Franchise Business Transaction Dispute Mediation Council of the Fair Trade Commission.
This system is a procedure that mediates disputes between franchise store owners and the franchise headquarters promptly and without cost burden, and where a settlement is reached, it also has legal binding force.

4. Lawsuit for a claim for damages
If the loss of sales due to the supply delay is significant, or if the franchise headquarters repeatedly breaches the contract, you can file a lawsuit for a claim for damages with the court.
In this case, it is advantageous to be sure to secure evidence of the supply delay, records of the decrease in sales, the relevant contract, and the certified mail.

Unlike ordinary civil disputes, franchise disputes involve a complex intertwining of the Fair Transactions in Franchise Business Act, the Monopoly Regulation and Fair Trade Act, and the special terms of the franchise agreement, so the assistance of a specialized attorney is essential.

This is because, in the course of negotiation, mediation, and litigation with the franchise headquarters, the rights and interests of the franchise store owner can be guaranteed to the fullest only when the legal reasoning and evidence are properly organized and addressed.

If you wish, at Daeryun Law LLC an attorney who has resolved numerous franchise dispute cases can consult with you directly, so please feel free to inquire at any time.