Franchisor and Franchisee Problems

I am an existing franchisor having trouble with one of our franchisees. What are the next steps?

As a general rule, we counsel a three step approach to dealing with a franchisee who is not in compliance with the Franchise Agreement or Operations Manual.

First, it is always best to try and resolve things in an amicable way through a phone call or email.

Second, if an amicable approval does not work, we recommend a Notice to Cure in most cases.

Most franchise agreements are structured such that a franchisor can terminate a franchisee who is not in compliance with the Franchise Agreement. For some grounds of termination, an immediate termination with no cure period is permitted. And for other grounds of termination, a notice and opportunity to cure for some time period must be provided.

Third, for those grounds that allow for immediate termination, or where a notice to cure has been issued but the franchisee did not come into compliance, we recommend a Notice of Termination, ending the franchisee’s franchise agreement and rights.

Please note, however, several states have franchise laws that govern the termination of the franchise agreement and these laws may over-ride the franchise agreement. Therefore, it is critical that you seek the advice of a franchise attorney before issuing a Notice to Cure or a Notice to Terminate.

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Client Recommendations

 5/5

We tried several law firms before we found The Law Offices of Carl Khalil and Sada Sheldon. Both Carl and Sada have been responsive to us, our processes and our needs. They have been wonderful to work with, they listen and they have helped us to navigate the complexities of franchising and trademark disputes.

We have been using Carl and Sada as our franchise attorneys since 2012 and could not be happier. Carl has worked on the franchisor side for decades and has a great way of explaining what is important, what has risk and how he has seen similar things play out in his past.

I have used Sada and Carl for several years now, and they have been consistently great the entire time. I was new to franchising when we met, and they have been so patient with us never making us feel bad for asking the same question 10 times. I never feel like they are recommending anything we do not need. I trust them 100% on all of our legal needs. It is such a luxury to have such a competent, kind, patient, and fairly priced legal team. If you need franchise attorneys, I would HIGHLY recommend both Sada and Carl.

After trying 3 other franchise law firms and receiving less than satisfactory results, I hit the jackpot with The Law Offices of Khalil and Sheldon. Carl Khalil is extremely responsive, a great communicator, brilliant in his profession, and always looking out for our best interests. He gets everything done in a timely and orderly fashion and keeps me on task. I would highly recommend this excellent law firm to any start-up or existing franchisor. Trust me, you won’t need to look any further!

Carl and Sada are fantastic at picking up the phone, answering questions, responding to emails, and doing what we all hope would be be done. But that is not where it stops. Carl and Sada have taken a personal interest in our business. Carl does our annual FDD renewals, for 3 years now, and is truly concerned about how we operate and how we can help our franchisees and protect the brand. This was unexpected and has resulted in more than just satisfaction, it has resulted in us truly appreciating and having warm feelings for this company. Thank you to Carl and Sada for their time, attention, and kindness and truth in dealing with our business matters.

The Law Offices of Khalil & Sheldon are amazing! They have done everything to help us set up and sell our franchises. They are fast to respond and very supportive in many ways. Very knowledgeable and give great guidance. We had very little knowledge of how to start and operate a franchise company and they guided us. They will be will part of your winning team!

I've been working with Carl for a few years and I cannot say enough good things about him. His knowledge, response time, instincts, and overall service is the best I've ever experienced. There have been a few times where we disagreed on how to proceed with a certain matter, but I deferred to him and his expertise, going against my own leanings. Every single time he was correct and I was so glad I followed his lead. I trust him implicitly and can't recommend him enough.

Foliage Design Systems has worked with The Law Offices of Carl Khalil & Sada Sheldon on franchise matters for years and appreciate their prompt, professional services and expertise in the franchise world. Whether it is our annual FDD filings, a question about an existing agreement, discussion about a new requirement, or any other area of concern, we know we can count on Carl and Sada for wise counsel and guidance. We look forward to our continued relationship in the years ahead.

I switched to the Law Offices of Carl Khalil & Sada Sheldon about five years ago. One of the best moves I have done in the past five years. Both of them have exceeded my expectations on every level. If you are thinking of using them you will not regret it. I highly recommend them.

If I could give MORE stars, I would. Carl and Sada are AMAZING. We have been working with them for a few years and they continue to be prompt, thorough, and professional. Carl is the most responsive lawyer I have worked with to date. He almost ALWAYS responds the same day. The firm is well organized and never misses a deadline; they normally nudge us to move faster :). Wish I had more contacts who need these services. HIGHLY RECOMMEND.

I would highly recommend Carl Khalil and his legal firm. They provided us exceptional legal service and advice for our business. They understand our business and we appreciate the value they provide. Their super swift response to our needs is an extra bonus that is hard to find these days.

I very much enjoy working with Sada. She is very knowledgeable and always guides me in the best direction. Her office staff are also very polite and friendly. I would recommend her to all my friends and family.

Sada Sheldon has served as my franchise attorney for the past several years. Not only is she easy and pleasant to work with, she is also very responsive to my calls and emails and, most importantly, has provided the correct legal advice every time. I recommend this law firm without reservation.

I've known Carl Khalil for 17-years as a franchisee, area developer and now as a franchisor. As an emerging franchise, we could not be happier with the guidance and support that we have received from both Carl and Sada Sheldon. Their expertise as well as their level of care has been reassuring. Both lawyers respond quickly and thoroughly for unique situations as well as routine matters like filing the FDD. I highly recommend Khalil Sheldon law firm as a franchise attorney.

I have worked with Carl and Sada for over 5 years and can't imagine working with any other team! They are always prompt and provide excellent counsel! Highly recommended!

We've been a client of the Law Offices of Carl Khalil & Sada Sheldon for the past years. In my 25 years in franchising, I've worked with many attorneys for my franchising and trademark needs and they are the best in the business.

We've been a client for many years and have been very pleased with Sada and her team. 6 Stars!!

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Our extensive experience in the practices of franchise law and trademarks will help you grow your business.

1248 Gunn Hall Drive, Suite 201
Virginia Beach, VA 23454

(757) 263-4596