Looking for Help with Franchisor Overreach Issue
I’m with an Independent Sponsor firm based in Houston, Texas. We are facing a scenario where the franchisor is prohibiting franchisees from making critical operational decisions relating to operating software. In our case, they’ve made exceptions to others in the system and have built in an established connection to allow easy data transfer between software platforms (their internal developed system and the third-party system we need to adopt).
We are particularly interested in understanding if anyone in PE has faced a similar situation and successfully navigated through it. If you have dealt with a hostile franchisor or are aware of strategies that have proven effective in such circumstances, your insights would be invaluable.
Additionally, we are exploring the legal landscape surrounding franchisee rights, particularly in cases where a franchisor restricts the use of certain software not explicitly outlined in the franchise disclosure document. We are interested in learning if there is any antitrust case precedent that might support a franchisee's right to choose alternative software for reasons related to profitability and competitiveness.