Legal Blog

Recent Wendy’s Lawsuit Highlights Realities of Franchising- Part 2

8354164531_41d018211b_bA few months ago, I wrote about a recent lawsuit filed by Wendy’s against one of its largest franchisees – DavCo Investments, LLC. The article highlighted an important reality of franchising; namely, that franchisors can require their franchisees to make expensive changes at the drop of a hat. DavCo has now responded to the suit, and that response raises some additional considerations for franchisees to keep in mind.  In particular, franchisees must be sure that all understandings between them and their franchisors are carefully documented in writing. In its response, DavCo subtly points out what can happen when a franchisee relies on oral promises. Referencing extensive turnover among Wendy’s executives during the past ten years, DavCo notes that “the people who made representations to DavCo regarding the future of Wendy’s and the financial commitments required of its franchisees were replaced, causing those representations to be willfully ignored.” Click here to read the full article on citybizlist.com.  

ABOUT BRIAN LOFFREDO

Franchise AgreementBrian Loffredo is a commercial litigator with more than fifteen years of experience representing clients in the franchise industry. Brian routinely assists clients during the licensing and franchise/FDD review process, as well as with the resolution of franchise-related disputes, including those involving terminations, territorial disputes, fraud, disclosure/relationship law violations and breaches of contract. In addition, Brian represents and counsels clients in the construction industry on matters involving litigation, construction defects, licensing and compliance, collections, mechanic’s liens, payment bond and Miller Act claims, contract drafting, and compliance with home improvement laws and other construction industry laws. Brian also has extensive experience representing financial institutions with workouts, collections and residential / commercial foreclosures. You can connect with Offit Kurman via FacebookTwitterGoogle+YouTube, and LinkedIn. WASHINGTON | BALTIMORE | FREDERICK | PHILADELPHIA | WILMINGTON | VIRGINIA