Franchise Brand Disputes—Keep It in the Family
Not everyone should franchise even though they can. Not every concept is perfect for franchising, nor are founders necessarily ready to be franchise leaders. Finding the compatible people to partner with you to franchise your concept may not be easy.
August 19, 2021 at 12:31 PM
6 minute read
CommentaryNot everyone should franchise even though they can. Not every concept is perfect for franchising, nor are founders necessarily ready to be franchise leaders. Finding the compatible people to partner with you to franchise your concept may not be easy. Certainly if a dispute develops, it is better to keep information regarding the dispute confined to avoid lasting impact on brand equity. Nevertheless, we learn from reading cases about franchise disputes as evidenced by a recent U.S. Court of Appeals for the Third Circuit decision.
In Get Kaisered v. AKT Franchise, No. 21-1033 (3d. Cir. 2021), the parties chose public litigation rather than private arbitration of their dispute that arose from starting a franchise program. Anna Kaiser, in two decades, had developed a custom cardio fitness program that had grown to four studios in the New York area. The studios were called "AKT in Motion" and utilized the proprietary "Anna Kaiser Technique." In 2018, she decided to sell her intellectual property and persona to a franchise developer, who had big plans for expansion. So far, this looks like the paradigm for franchise development.
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