Agency and Franchise Disputes

 0121 387 4000

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Agency and Franchise Disputes

Agency and franchise relationships depend on trust and shared interests but disputes still arise over territory rights, performance targets, commission calculations, termination terms, and post-termination restrictions.

Commercial Agents Regulations

Commercial agents have specific protections, including rights to compensation or indemnity when the relationship ends. We advise principals and agents on what the regulations mean for them. Do they apply to your arrangement? How do you calculate compensation or indemnity payments? What about restraint of trade provisions and notice periods?

Commission Disputes

Commission calculations cause friction constantly. We handle disagreements over commission rates, whether agents are entitled to commission on repeat orders, commission on sales made outside their territory, when payment’s due, and rights to set off amounts. We interpret commission provisions clearly and pursue or defend claims efficiently.

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Territory and Customer Allocation

 

Agents put serious time and money into developing their territories and customer relationships. We help with disputes over exclusive territories, customer poaching, how online sales affect territorial rights, and allocation of key accounts. Whether you’re protecting your agency territory or defending your distribution strategy as a principal, we give practical, commercially aware advice.

 

Termination and Compensation Claims

 

Ending an agency relationship often triggers major disputes. We handle wrongful termination claims, notice period arguments, calculating termination payments under the Commercial Agents Regulations, and enforcing post-termination restraints. We’ve represented agents seeking fair compensation and principals defending claims.

 

Franchise Agreement Disputes

 

Franchise relationships have detailed operational requirements, which creates plenty of scope for disputes. We help with disagreements over system compliance, brand standard requirements, changes to operating manuals, approved supplier issues, and technology system requirements.

Franchise Fees and Royalties

Financial arrangements in franchise systems get complicated. We resolve disputes over initial franchise fees, ongoing royalty calculations, marketing fund contributions, auditing rights, and transfer fees. We make sure fee provisions are being applied and enforced properly.

Territory Protection

Franchisees invest heavily based on territorial protections. We handle disputes over territorial encroachment, online sales restrictions, company-owned locations appearing in franchise territories, and competition from other franchisees. We protect franchisee investments whilst recognising that franchisors have legitimate business development needs too.

Renewal and Termination Rights

Franchise renewals and terminations involve serious money. We advise on renewal rights and conditions, termination for cause versus termination without cause, cure periods for breaches, transfer restrictions, and first refusal rights. We make sure everyone understands and applies these provisions properly.

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Post-Termination Obligations

After a franchise relationship ends, obligations remain. We help with de-identification requirements, returning confidential information, enforcing non-compete clauses, transferring customer relationships, and sorting out ongoing obligations.

Master Franchise and Area Developer Disputes

Multi-unit and master franchise arrangements add complexity. We handle disputes between franchisors and master franchisees, sub-franchisee issues, development schedule failures, and territorial development rights.
We represent principals and agents, franchisors and franchisees, across various sectors. We know the regulatory frameworks that govern these relationships.

Our approach is balanced as we try to resolve disputes efficiently, but we’re ready to litigate when we need to. Whether you’re facing unexpected termination, disputed commissions, or breaches of restrictive covenants, we’ll give you clear guidance to protect your rights and commercial interests.

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Contact Us Today

At Tower Bridge Legal, we believe in building lasting relationships with our clients. When contract disputes arise, you gain not just legal representation, but a trusted adviser who understands your business and is committed to achieving the best possible outcome for you.

Contract Disputes Services