Practice Contact

Dennis D. Palmer
Practice Area Chair
T. 816.374.0593

Franchising and Distribution Litigation

As in any long-term business relationship, disputes between parties to franchise and distributor agreements sometimes occur. Various federal and state laws and regulations may govern controversies arising out of these types of agreements.

Polsinelli Shughart PC has considerable experience in successfully representing clients’ interests in franchising and distribution disputes. Our representation spans many industries including, automotive, heavy metal, tires, heavy equipment parts and services, tax preparation, food services, alcoholic beverages, garage doors, software, insurance, medical devices, household goods, temporary personnel, gasoline, health and beauty products, and residential and industrial cleaning supplies and services.

Our attorneys represent both plaintiffs and defendants in franchising and distributing disputes, including claims based on federal and state laws concerning the franchise relationship, antitrust laws, “Little FTC Acts,” common law theories, business opportunities laws and specific statutes for particular businesses, such as automobiles, farm implements, service station and wholesale liquor dealerships.

When disputes arise, we evaluate all potential solutions and strategies to obtain the most cost-effective and successful resolution possible. Recommended alternatives to litigation may include arbitration, mediation, private judges, special masters and mini-trials.

Notable Experience

We have represented franchisors and franchisees in numerous state and federal courts and in arbitration proceedings

Polsinelli Shughart PC has substantial experience representing franchisors and franchisees in actions to obtain injunctive relief to enforce both pre and post termination restrictions in agreements, including covenants not to compete. We also are experienced in enforcing rights under trademark and other intellectual property laws applicable to distribution systems.

Examples of franchise and dealership cases in which our attorneys have served as lead counsel include:

Represented franchisor in a tire and automotive products franchise system in claims by a group of franchisees for conspiracy to breach franchise agreement fraud and violation of antitrust laws. After franchisor successfully defended plaintiff’s motion for preliminary injunction to prohibit alleged illegal action, franchisees settled their claims by agreeing to renew their franchise agreement and pay increased franchise fees. International Automotive Corporation, et al. v. NTW, Inc., et al., U.S. District Court for the District of Columbia, Case No. 89-1944.
Obtained summary judgment for a manufacturer of commercial and residential garage doors on its claim to recover unpaid invoices from dealer and on dealer’s counterclaims for breach of contract, fraud and wrongful termination. Raynor Mfg. Co. v. Raynor Door Company, et al., District Court of Shawnee County, Kansas, Case No. 05C1293.
Represented large tax preparer franchisor in action to enjoin a terminated manager of franchisees in one of its territories from employment or association with a competitor and soliciting co-employees to leave franchisor to join competitor. After evidentiary hearing, court issued a preliminary injunction prohibiting the manager from employment with competitor and soliciting others to leave franchisor’s employment. H&R Block v. Steffes, Jackson County, Missouri Circuit Court, Case No. 0516-CV-29738.
Successfully represented franchisor in action to enjoin terminated franchisee from operating the same type of business and soliciting customers during the term of the restrictive covenant and for recovery of unpaid franchise fees. H&R Block v. Simon, United States District Court for the Eastern District of California, Case No. 1:06-CV-01385-0WW-SMS.