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

Steak n Shake sued over franchise agreements

When a company creates a successful business model it usually wants to duplicate this success in order to multiply its profit margin. One way to do this is to begin franchising its business model in order to expand the brand's market. Restaurants are an example of a commonly franchised business type in Georgia. However, it is important for all parties to fulfill the terms of the franchise agreements in order to avoid the need for litigation.

Restaurant franchise Steak n Shake has allegedly failed to do this, resulting in litigation being filed by three franchisees. The dispute surrounds the company's policy requiring franchisees to adopt the company's uniform menu prices. The franchisees claim that the defendant company should not have required franchisees to conform to menu prices.

The plaintiffs, who have filed three separate lawsuits, are attempting to stop the company from terminating their franchise agreements. The franchisees are also alleging fraud as well as breach of contract. The plaintiffs in their separate lawsuits argued that the defendant company should not have forced franchisees to conform to the company's menu policies since a federal appeals court already ruled in favor of another franchisee who previously challenged the practice.

This case illustrates how parties to franchise agreements may not always see eye-to-eye in Georgia or in any other state. Litigation may be the only solution when disputes are not able to be resolved between the parties. However, in order to prevail, a party to a business litigation case will have to effectively argue a strong legal argument in front of the court.

Source: Indianapolis Business Journal, "Steak n Shake dispute with franchisees reaches to Denver," Scott Olson, Aug. 5, 2013

Contact Kaufman & Forman, P.C. Now

Bold labels are required.

Contact Information
disclaimer.

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.

close

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.