BREACH OF CONTRACT BY THE FRANCHISEE

A multinational company, which develops part of its business through the franchise model, has suspicions of significant breaches of contract by one of its franchisees. These acts could be qualified as unfair competition.

The franchisee under investigation had 5 establishments open with the franchise for the last three years. The client asked us to carry out an investigation in order to prove the breaches of the contract.

We were able to prove that the franchisee was developing a parallel network of franchises under a new brand name. This action was a serious breach of the contract between the franchisee and the franchisor. For the development of the new business, he had copied the same contractual models used by the client company and the commercial strategy of the franchise, as well as offering his services to other franchisees. In addition, they were diverting part of the turnover of its premises to reduce the payment of the operating fee.

Thanks to our report, the client was able to receive substantial compensation for the acts of unfair competition committed by the franchisee.

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