Franchise Mergers and Acquisitions Can Raise Questions
The merger or acquisition of or by a franchisor or supplier is usually a matter of great concern for existing franchisees or dealers.
It may mean two competing systems are now going to exist as one. This 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.
Our Experience With Mergers and Acquisitions
At Dady & Gardner, P.A., our franchise attorneys have 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.
Our law firm has 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) to help our clients secure their rights, regardless of who their franchisor ultimately becomes.
To learn more about our recent victories and work that our Dady & Gardner, P.A. attorneys have successfully litigated on behalf of our clients, please visit our Big Wins page.