Franchise
James E. Culhane
Partner
(303) 892-7397
E-mail

Catherine A. Hance
Partner
(303) 892-7375
E-mail

Thomas P. Johnson
Partner
(303) 892-7487
E-mail

Victoria V. Johnson
Partner
(303) 892-7307
E-mail

John L. McCabe
Partner
(303) 892-7351
E-mail

Paul  Means
Associate
(303) 892-7435
E-mail

Case Study: RE/MAX

DGS represented RE/MAX International in litigation and arbitration against one of  RE/MAX’s independent regional directors over the director’s sale of RE/MAX franchises in Cuba, which was unauthorized by RE/MAX and contrary to the U.S. embargo on that country.  Upon learning of these sales, which had been concealed from RE/MAX, we assisted RE/MAX in terminating its sub-franchise agreement with the regional director and obtained a preliminary injunction precluding the further sale or development of RE/MAX franchises in Cuba.  In response, the regional director filed a claim for breach of contract based on the termination, and asserted damages of over $40 million.  In the two week arbitration hearing, we submitted expert testimony establishing that the director’s sales of franchises in Cuba did violate the U.S. embargo statutes and several provisions of the sub-franchisor agreement, thereby justifying the termination.  The arbitration panel agreed, and found in favor of RE/MAX on all claims.

 

Related Expertise

Bankruptcy & Creditors' Rights
Construction & Real Estate Litigation
Employment & Labor Law
Finance
Mergers & Acquisitions
Trade Secrets Protection


Read A Case Study

RE/MAX
Franchise Expansion Issues