Industries: Franchising & Distribution

It does not take much for the competitive landscape to tip dangerously out of balance in the distribution and franchise segment of the economy.

A rival violates a trademark or encroaches on territory.

A group of franchisees initiate litigation or ignore the franchise agreement.

Intra- or interstate legislation threatens your way of doing business.

You need legal help that understands the various aspects of distribution and franchising. The team at McGuireWoods provides a full spectrum of services to clients who are involved in the distribution of products or services in franchise systems.

Our team includes four former chairpersons of their State Bar's Section on Antitrust, Franchise and Trade Regulation, as well as other attorneys noted for their expertise and experience. Our offices are linked by a sophisticated communications network, allowing us to represent clients in distribution and franchising matters from any of our locations in the United States or overseas.

We have experience with business strategies for franchise and distribution operations, including distribution, franchise, brokerage, agency, and representation agreements. In addition, we regularly prepare franchise-offering circulars and represent our clients in franchise registration.

Our team is experienced in the application of state and federal distribution and franchise laws to each client's business, and we have represented clients in matters involving antitrust and restraint of trade, as well as international distribution and franchise law.

Common legal issues our clients face include:

We frequently represent our clients in court and in arbitration or mediation. We also provide compliance audits and reviews, helping clients avoid regulatory problems by implementing appropriate corrective measures, with minimal exposure to regulatory or civil penalty in the event violations are found. We also offer our clients effective legislative counsel and lobbying support, so often needed in regulated industries.

Representative Work

• Represented a national restaurant franchisor in terminating a franchisee that had not adequately developed the territory granted to it in a regional development agreement.
• Represented a national franchisor in three class actions brought by franchisees claiming, among other things, breach of contract, antitrust violations and breach of duty of good faith. The suits were consolidated and settled, paving the way for better relations between the company and its franchisees.

• Represented a national chain of diet centers whose franchisees were purchasing unapproved products. Obtained an injunction to prohibit the distribution of these products within the client's system, and obtained a multimillion-dollar judgment against the manufacturer.
• Secured the removal of a defendant/franchisor in a multiple defendant lawsuit. The holding was affirmed by the United States Court of Appeals for the Eighth Circuit.
• Successfully represented an international franchisor in a multi-million dollar international franchising arbitration filed by a Mexican franchisee to prevent an alleged encroachment of a protected territory.
• Successfully represented a national retailer in the defense of a claim for wrongful termination of a franchisee that was based on the franchisee’s violation of operational standards.

Client List

• Atlanta Bread Company
• General Nutrition Franchising, Inc.
• Woody’s Bar-B-Q Holdings, Inc.
• American Dairy Queen
• Beach Road Chicken Dinners
• Athens Pizza
• Bono’s Bar-B-Q Holdings, Inc.
• The Invironmentalist, formerly known as DuPont Commercial Flooring Systems
• Paul Davis Restoration, Inc.
• CertaPro Painters
• Nutrilawn
• California Closets
• Jos. A. Banks
• GarageTek