Industries: Franchise & Distribution

Litigation & Dispute Resolution

McGuireWoods has a deep bench of lawyers who handle national and international franchise and distribution matters. One of our great strengths is the breadth of experience of our trial lawyers. We look for innovative ways to help clients resolve conflicts short of trial, but we can marshal a first class team to head to court or to arbitration if necessary. At McGuireWoods, franchise and distribution clients find:

• Lawyers experienced as lead counsel in national and state litigation.
• The ability to handle fast-paced cases involving TROs and injunctions.
• A separate e-discovery division staffed to quickly and cost-effectively handle large volumes of electronic information.
• Focused use of motions to obtain early dismissals of claims and cases.
• A readiness to go to trial that, when combined with effective presentation of evidence and persuasive legal argument, results in positive verdicts.

We have litigated and arbitrated claims involving nationwide class actions, antitrust matters, trademark and trade dress infringement, enforcement of system standards, terminations and collection of future royalties, refusals to renew or transfer, covenants against competition, discrimination, registration and disclosure issues, advertising, misappropriation of trade secrets, product liability, fraud and negligent misrepresentation, breach of fiduciary duty, breach of contract, tortious interference, good faith and fair dealing, state unfair and deceptive trade practices, and refusals to arbitrate.

We have served as nationwide coordinating counsel for several national franchisors. We have also tried cases for franchisors in courts across the nation. We approach each matter with an eye toward resolving disputes quickly and economically, whether through litigation or other means. In addition, we have extensive experience with mediation, arbitration, and other methods of alternative dispute resolution.

Representative Engagements

• Defended an automotive franchisor in a nationwide class action over the administration of advertising funds, securing an appeal widely recognized as one of the most significant in the history of franchising for its holdings regarding the requirements for class certification, the franchisor-franchisee relationship, and the interplay between contract and tort claims.
• Represented a national franchisor in three class actions brought by franchisees claiming, among other things, breach of contract, antitrust violations, and breach of a 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, securing an injunction to prohibit the distribution of the products within the client's system and a multimillion-dollar judgment against the manufacturer.
• Represented a national real estate franchisor in enforcing its trademark rights against infringement by a terminated franchisee on social media sites.
• Represented a franchisor in an international franchising arbitration filed by a Mexican franchisee to prevent an alleged encroachment of a protected territory.
• Represented a national restaurant franchisor in terminating a franchisee that had not adequately developed the territory granted to it in a regional development agreement.
• Secured the removal to federal court of a multidefendant lawsuit, in a decision affirmed by the U.S. Court of Appeals for the 8th Circuit.
• Represented a national franchisor in the defense of a claim for wrongful termination of a franchisee based on violation of operational standards.
• Regularly represent one of the country’s largest international franchisors in injunctive proceedings to enforce franchise terminations.
• Regularly represent franchisors in lawsuits to defend against wrongful termination claims; protect intellectual property from infringement, dilution and misappropriation; and enforce covenants against competition.