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During stressful times, tensions between a franchisor and franchisee frequently bubble to the surface, sometimes over trivial matters that explode into bitter battles before the bench. Going to court is the last, least desired option to settle a dispute. No outcome is certain. Before taking this final step, both parties’ interest is to resolve their issues before a trial is necessary.
Due to the Covid-19 pandemic, many franchise systems are fighting for their existence as a business No one is sure what the aftermath of the pandemic will look like. However, there will be survivors, anxious to take advantage of the new environment. Taking these actions may be the difference between those who emerge from the economic rubble and those who do not.
The Coronavirus pandemic has changed the dynamics between franchisors and franchisees, placing an inordinate strain on the business relationship. As the pandemic has gone on, the franchise relationship has become more and more frayed; with disputes arising over brand protection issues, strained and lagging supply chains, payment shortfalls, and even the reevaluation of the franchise agreement itself.
