Misclassified Franchisees

Owning a small business can be a dream job. Unfortunately, sometimes its too good to be true. While a franchisor ordinarily provides its franchisees with assistance, if that assistance becomes too controlling, you may find yourself wondering how your dream became just another job. If that has happened to you, discuss your options with Eric.

Franchise Defaults & Terminations

After making huge investments in your independent business, finding a default or termination notice in the mail can be daunting. Before you do anything else, contact Eric. He has years of experience reviewing, contesting, and negotiating the resolution of franchise defaults and terminations. He can help you, too.

NEW FRANCHISES AND DISCLOSURES

Before you sign a franchise agreement or pay anything to your franchisor, make sure your franchisor gave you a Franchise Disclosure Document (“FDD”). If not, Eric can help you decide what to do next. If so, be excited to open and operate your new business. But keep your development timelines in mind. If you begin to fall behind on your development obligations, contact Eric so he can help you.

Warranty reimbursements

Dealers looking to increase their warranty reimbursements should take a fresh look at state reimbursement laws. Many are open to interpretation, and manufacturers do not always understand the nuances between state laws. If you are looking to improve your warranty reimbursement rates, Eric can help you do that.

Incentive programs

Dealers must fight to keep up with ever-changing OEM incentive programs. Spending millions to update showrooms and service centers, meet their OEM’s ever-changing sales priorities, and otherwise accomplish goals their manufacturers set for them. But year after year (and sometimes more frequently), these programs change. In certain circumstances, program changes look a lot more like franchise modifications. If you believe your OEM’s incentive program is unfair, contact Eric.

PROTECTING YOUR SALES

Keeping your OEM and other dealers from encroaching on your sales territory is an important, but difficult task. OEM’s are constantly exploring direct sales methods that mimic the Tesla model, or try to monetize vehicle services previously reserved to dealers. When these things happen, contact Eric so he can address them before they begin to affect your bottom line.

Represented a franchise client in a system-threatening class action lawsuit, including first chairing an arbitration, managing the Sixth Circuit offensive and defensive strategy, and supporting the Ninth Circuit strategy.

Structured and drafted a contractual framework for a new partnership between an automotive dealer and an OEM while remaining in compliance with state dealer statutes and avoiding dealer protests and other litigation.

Represented an automotive client in a lawsuit alleging fraud, coercion, state dealer law violations, and otherwise challenging an OEM’s nationwide incentive program.

Represented a franchise client in federal court in a lawsuit alleging fraud, breach of contract and various state franchise law violations. Successfully argued motion to dismiss and resolved the dispute on favorable terms.

Defended a global automobile manufacturer on appeal in an action to uphold a denial of warranty rate increase request by a dealership using a novel theory of recovery.

Represented a New England client in a wrongful death suit against a local franchisee and its franchisor.

Litigated franchise agreement, area development agreement, and other franchise termination issues, as well as claims for conspiracy, in a case against a national fitness franchisor.

Structured and drafted a contractual framework for a new partnership between an automotive dealer and an OEM while remaining in compliance with state dealer statutes and avoiding dealer protests and other litigation.