Are you worried about franchise disputes? Franchising has become one of the most popular business models in Florida, a state known for its vibrant economy and diverse consumer base.

Florida’s Business Observer published the results of an International Franchise Association report in February 2025, containing significant benefits for the Sunshine State:

• About 1,600 new franchises will be added in Florida. That puts the Sunshine State among the top 10 states for franchise growth in 2025.
• Florida had an estimated 64,800 franchises in 2024, and with projected growth of 2.4%, is poised to have 66,400 franchise establishments in 2025.
• About 14,600 new jobs will be created by the additional franchises in the Sunshine State in 2025.
• Franchise employment in Florida is expected to grow 3.5%, from 687,800 in 2024 to 702,400 in 2025.
• Franchise output in Florida is expected to rise by 5.6%, from $69.1 billion in 2024 to $73 billion in 2025.

As the number of franchises continues to grow, so does the potential for disputes between franchisees and franchisors. Understanding the most common types of franchise disputes can help business owners navigate these challenges effectively.

What Are the Leading Franchise Disputes in Florida?

Franchise disputes can arise from various issues, and it’s crucial for franchisees to understand their rights and obligations under Florida law and their franchise agreement. Below are the five most common franchise disputes encountered in Florida:

1. Breaches of Contract

Contractual disputes are often at the heart of franchise disagreements. A franchise agreement typically outlines the franchisor’s obligations to the franchisee and vice versa. Breach of contract can stem from various factors, such as failure to meet sales targets, non-compliance with operational standards, or violation of territorial rights.

For franchisees, proving a breach may involve collecting evidence that the franchisor failed to uphold their end of the contract. On the other hand, franchisors may argue that franchisees have failed to meet contractual requirements, leading to disputes that can have financial implications for both parties.

2. Issues with Fees and Royalties

Franchisees often voice concerns regarding the fees and royalties they are required to pay to franchisors. These fees can include initial franchise fees, ongoing royalty fees, and additional assessments for marketing and support services. Disputes may arise when franchisees believe they are being charged unfair fees or when franchisors fail to provide the promised support and resources.

Royalty disputes can also occur when franchisees feel that the calculation or assessment of sales is incorrect. This often leads to confusion and requires careful scrutiny of agreements and financial records to resolve.

3. Problems with Territorial Encroachment

Territorial rights are a critical aspect of many franchise agreements. Franchisees typically expect to operate within a specific geographic area without competition from other franchises under the same brand. Encroachment occurs when a franchisor opens a new franchise location too close to an existing franchisee’s location, undermining their market share and profitability.

Resolving encroachment disputes often necessitates a thorough examination of the franchise agreement. A business owner may need to negotiate with the franchisor based on language and expectations set forth in the contract, making it essential to have a skilled attorney navigate these complexities.

4. Lack of Franchisor Support

Franchisees invest their time and resources into fulfilling the obligations of their franchise agreements, often with the expectation of support from their franchisor. Issues can arise when franchisors fail to provide adequate training, marketing assistance, or operational guidance. When this happens, franchisees may feel that their chances of success are significantly hampered, leading to disputes.

A lack of support can create various challenges, ranging from operational inefficiencies to poor customer service, which can potentially damage the franchisor’s brand reputation. To avoid these conflicts, franchisees should document all communications with their franchisor regarding support and resources provided.

5. Disputes Over Franchise Termination or Renewal

Franchise agreements often contain provisions about termination and renewal. Both parties must adhere to the terms set forth within the agreement. Disputes may occur when a franchisor seeks to terminate a franchisee’s agreement without proper justification or when a franchisee believes they are unfairly denied renewal.

Responding to termination or renewal disputes requires careful analysis of the specific terms in the franchise agreement. Franchisees should seek to understand their rights regarding notice periods, performance standards, and other contractual obligations. Franchisors must also ensure they are compliant with regulations outlined in the agreement to mitigate potential disputes.

How Parrish & Goodman Can Help

Navigating franchise disputes requires specialized legal knowledge. The experienced Florida Franchise Dispute Attorneys at Parrish & Goodman have the expertise to guide franchisees and franchisors through complex negotiations and legal proceedings. Whether you need assistance in negotiating a resolution or representation in court, having an attorney who understands franchise law can significantly affect the outcome of your case.

At Parrish & Goodman, our attorneys can:

• Assess the terms of your franchise agreement and identify any breaches.
• Review financial documents related to fees and royalties.
• Help negotiate with franchisors to resolve territorial issues.
• Advocate for you in disputes related to a lack of support.
• Provide guidance on termination and renewal rights under your franchise agreement.

When faced with a franchise dispute, don’t hesitate to reach out. Our attorneys are committed to providing personalized legal solutions tailored to your unique situation.

Frequently Asked Questions About Franchise Disputes

What should I do if I think my franchisor has breached our contract?

Document all instances of breaches, review your franchise agreement, and consult an attorney experienced in franchise law to explore your options.

How can I resolve a dispute regarding franchise fees and royalties?

Start by reviewing your franchise agreement and financial records. If discrepancies exist, consult with a legal expert to clarify any contractual obligations and negotiate with your franchisor.

What can I do about territorial encroachment issues?

Gather evidence of the encroachment and review the franchise agreement carefully. Legal counsel can provide guidance on how to address the matter with your franchisor.

If my franchisor is not providing the promised support, what are my options?

Keep detailed records of all communications regarding support and document any deficiencies. Speak with an attorney about the best steps to take in addressing the lack of support.

What are my rights regarding franchise termination or renewal?

Your rights will depend on the specific language within your franchise agreement. Consulting an experienced franchise attorney can help clarify your options and obligations.

Florida Business Lawyers | Franchise Disputes Attorneys

Understanding the common types of disputes and how to navigate them is essential for franchisees in Florida. For personalized legal assistance, consider reaching out to the skilled attorneys at Parrish & Goodman.

Schedule a free consultation with us—you’re welcome to visit us in person at our Naples or Fort Myers offices, or join us virtually via Zoom. We’d love to hear about your needs, concerns, and goals so our team can start working to safeguard your interests. Give us a call today at 813-643-4529 (4LAW), or simply fill out the contact form to request your consultation.