Franchise, License and Agency Litigation

Mike Cronan, Peggy Grant, Thad Barnes and J.D. Humphries

Stites & Harbison's attorneys represent clients litigating franchise, distributorship, license and agency issues for manufacturers, franchisors and distributors. Our clients include world-renowned franchisors and growing businesses successfully pioneering new products and systems.

We understand that, for our clients, litigation is a means to an end. Stites & Harbison learns about your business to tailor its approach to the dispute at hand.

Experience

  • We work with our clients to enforce franchise, distributorship, marketing agreements, auto dealership and sales agency agreements. Stites & Harbison helps clients protect their rights by either seeking or resisting termination. Representations include the satisfactory resolution of the termination of a sales agency agreement for the sale of appliance parts, the termination of a distributorship agreement for the sale of distilled spirits, a NASCAR licensing agreement and the termination of a licensing agreement for failure to support contracted-for marketing support. See also Southern Comfort Waterbeds and Spas, Inc. v. Master Spas, Inc., 2004 U.S. Dist. Lexis 24288 (W.D. Ky. August 9, 2004) (The manufacturer of spas and hot tubs terminated the distributorship with reasonable notice as a matter of law) (currently on appeal).
  • Stites & Harbison defends and prosecutes tort claims involving franchise, distributorship, marketing agreements, auto dealership and sales agency agreements. Our representations include suits against former "insiders" based upon breach of fiduciary duty and conflict of interest transactions, the successful defense of the purchaser of a franchisor against securities fraud and franchise tort claims brought by franchisees arising out of the acquisition of over 100 properties, and representing an insurer that was defrauded by one of its authorized agents. See also Ennes v. H&R Block Eastern Tax Services, Inc., 2002 U.S. Dist LEXIS 419 (W.D. Ky. January 14, 2002) (The court found that there was no cause of action for tortious bad faith in the context of franchisor-franchisee contracts).
  • We help franchisors protect their trademarks and trade secrets, including enforcing and challenging covenants not to compete associated with franchise and license agreements, prosecuting breach of contract/infringement claims which arise when expired or terminated licensees continue to sell products. See Pure Country v. Sigma Chi Fraternity, 312 F.3d 952 (8th Cir. 2002).
  • Our attorneys have represented clients involving the recovery of leased property and the effect of bankruptcy on a franchise.

For more information

  • Charles J. Cronan IV (502) 681-0424
  • Margaret Grant (502) 681-0503