Kaufman & Forman, P.C.
Call to arrange a consultation
678-957-7769 | 770-390-9200
Contact Us
practice areas

Dispute involving Georgia Franchisor resolved in arbitration

When an entrepreneur decides to open a business, there are a variety of ways to go about it. One common method is through opening a franchise. This means the entrepreneur will work with a franchisor to license the entrepreneur for the use of the franchisor's successful business model. Generally, within this business arrangement, the success of a Georgia franchisor is dependent on the success of the franchisee. This typically means the franchisor and franchisee are on the same team. When that relationship begins to decay a franchise dispute can arise, requiring legal intervention.

That situation is what seems to have been on display for one particular Georgia business owner and her franchisor, Any Test Franchising, Inc. The franchisor licenses the Any Lab Test Now franchises -- private commercial labs that analyze a variety of human specimens, such as blood or urine. Any Test was recently in the middle of a heated legal dispute with one franchisee who alleged the franchisor terminated her rights without legal foundation.

According to reports, the franchisee asserted that the Any Test ended her agreements in order to resell territories she had rights to behind her back. Any Test claimed that the franchisee was in breach of contract because she failed to open additional locations on schedule as called for by contract.

The disagreement sparked a suit from Any Test and a countersuit from the franchisee. Any Test then succeeded in having all the suits terminated and putting the matter into arbitration.

At first, the franchisee had a difficult time getting together the money to pay her share of the arbitration costs. That delayed the case. When the matter finally got a hearing, the three arbitrators ruled for the franchisee, awarding her $340,000.

Franchising investments are often more than simple business decisions. They often reflect a particular passion of the franchisee. That can create deeper-than-usual business relationships. Having a legal team that understands such nuances can be crucial to effective dispute resolution.

Source: Blue MauMau, "Any Test Franchising Hit with $340K Arbitration Award," Janet Sparks, Nov. 1, 2012

No Comments

Leave a comment
Comment Information

Contact Kaufman & Forman, P.C. Now

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

get Legal Help Now

Kaufman & Forman, P.C.
8215 Roswell Road
Building 800
Atlanta, GA 30350

Toll Free: 800-461-5864
Phone: 678-957-7769
Fax: 770-395-6720
Atlanta Law Office Map

Review Us

Robert Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the May issue of The American Lawyer & Corporate Counsel magazine.Alex Kaufman has been selected as a 2013 Top Rated Lawyer in ‘Commercial Litigation’ as will be published in the December issue of The American Lawyer & Corporate Counsel magazine.

*AV Preeminent and BV Distinguished are certification marks of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the bar and the judiciary. Martindale-Hubbell ratings fall into two categories: legal ability and general ethical standards.