Franchise Litigation: If you buy a franchise, it is important to understand the complex business law and contract law concepts specific to franchisees. Cochran & Edwards franchise litigation attorneys have years of experience representing franchisees, recently handling one of the most high profile franchisee cases in the country in Atlanta Bread Co., Int’l. vs. Lupton-Smith, 285 Ga. 587 (Ga. 2009).
In the Atlanta Bread case, lawyers for Cochran & Edwards filed suit against the Atlanta Bread Company on behalf of their client, Sean Lupton-Smith, over the allegedly wrongful termination of five lucrative Atlanta Bread Company franchises owned by Mr. Lupton-Smith. The case started in February of 2006 when Atlanta Bread Company terminated each of Mr. Lupton-Smith’s franchise agreements based on the alleged violation of a non-competition covenant when Mr. Lupton-Smith opened PJ’s Coffee & Lounge, a bar & night-club. Lawyers for Cochran & Edwards filed suit on behalf of the franchisees, seeking damages in excess of $16 million. The trial court, Georgia Court of Appeals and Georgia Supreme Court all unanimously ruled that the non-competition covenants were void and unenforceable, and provided no basis for terminating the franchises. Shortly after the Supreme Court ruled against them and the case was placed on a trial calendar, Atlanta Bread Co., who was represented by a team of lawyers from two of the largest law firms in the United States (Jones Day and Troutman Sanders), agreed to settle the case for a confidential amount.
For more information or to speak with a franchise litigation attorney, please call us at (770) 435-2131 or complete the form below.