|
|
FRANCHISE AND DISTRIBUTION LAWYERS
THE SCHWARTZ COOPER
FRANCHISE PRACTICE
|
In
each year from 2000 to 2002 and in 2006, Carmen D. Caruso has
been named a "HIGH FLYING LEGAL EAGLE" by Franchise
Times, a leading industry publication!
|
FRANCHISING is now a $1 trillion industry and is predicted to double in size over the next ten years.
For more than twenty years, Chicago trial & appellate attorney
Carmen D. Caruso has represented franchise clients in complex
litigation and client counseling, and he serves as Chair of the Schwartz
Cooper Franchise Practice.
The Schwartz Cooper Franchise Practice is dynamic and growing.
Schwartz Cooper attorneys have represented franchise and distribution
clients in over 100 systems on a nationwide and local basis, ranging
from the world's largest franchisor to exciting and thriving start-ups,
and we have counseled clients on the threshold decision of whether to
franchise or pursue other means of distribution and growth. We have
confronted
every franchise law issue from A to Z.
For our franchisor clients, we provide an array of transactional,
litigation and dispute resolution services. As a mid-sized law firm we
are large enough to provide clients with the specialized services
necessary in this complicated field, yet we are small enough that our
services are personalized and represent significant value to our
clients. Our focus is on establishing long-term "win-win" relationships
that enable our clients to grow their franchise or distribution systems
domestically and internationally, and wherever opportunity may be
present. For our franchisor clients, we are a full-service law firm
that represents our clients in:
Schwartz Cooper attorneys also represent area developers and
representatives, sub-franchisors, multi-unit and single-unit
franchisees, licensees, dealers, distributors, and independent
franchisee associations in transactional, litigation and dispute
resolution matters. We have achieved significant litigation and
arbitration victories for these clients and have successfully negotiated
new system-wide franchise agreements through a "collective bargaining"
process. We have guided owners as they expanded into multi-unit
ownership and co-branding. For franchisees and dealers, our services
include:
-
Franchise Trials, Appeals, Arbitration & Mediation
- Franchise Opportunity Review and Counseling
- Franchise Relationship Counseling, Dispute
Avoidance and Resolution
- Complete Corporate and Business Law Services
for the protection of our clients and their principals.
- Employment Law
- Real Estate Law
Brands & Industries
Schwartz Cooper attorneys have significant
experience in virtually every industry that has franchised, including:
- Automobile Dealerships
- Automotive Aftermarket
- Car Rental
- Construction
- Convenience Store
- Educational & Child Development
- Health Care
- Health Clubs
- Home Repair
- Hospitality & Lodging
- Janitorial
- Restaurant (quick service, casual dining and
pizza)
- Personal Services
- Product Distribution
- Real Estate
- Retail (new & resale)
- Service Stations
- Tax Preparation
-
Travel
Industry
Significant Franchise Cases
Mr. Caruso and his partners at Schwartz Cooper have
significant experience representing McDonald’s Corporation in numerous
complex cases including:
§
Defense against charges of breach of contract and fraud
filed by a terminated supplier of uniforms to the system; where the
supplier alleged that it had an oral agreement to serve to manage the
production and sales of uniforms by several uniform suppliers, and
claimed damages for “custom programming” new computer software for the
management of uniform production and sales.
§
Defense of parallel state and federal cases, which
included a federal RICO claim, arising out of an attempt to settle a
large verdict that had been rendered to an ice cream vendor in an
earlier trial, in which our client had been represented by another law
firm.
§
Defense, resulting in a summary judgment victory, against
RICO, antitrust, fraud and breach of contract claims brought by the
terminated owner of five New York City restaurants.
§
Defense against “Rule 11” allegations brought by a New
Jersey construction firm with reputed ties to organized crime, alleging
that there had been a scheme to defraud McDonald's with respect to the
remodeling of its rest rooms.
§
Defense against charges of
theft of trade secrets filed by
the owner of certain oven technology.
§
Defense of claims brought by the terminated franchisee
from Paris, France, resulting in a landmark ruling on the subject of
good cause for franchise termination, and the award of all of our
clients’ attorneys’ fees.
Mr. Caruso and his partners have also represented, with success:
§
A national pizza franchisor against bad faith claims
related to unsuccessful rollout of deep-dish pizza product.
§
A national health club against charges of failing to
properly register in the State of Illinois.
§
An international retailer against claims of fraud by a
terminated franchisee, who claimed that he was defrauded in the bank
loan process, and who sought to defy the contractual post-termination
provisions by claiming “selective enforcement” and alleged waiver by
delay in enforcement.
Mr. Caruso and his partners have successfully
represented aggrieved franchisees in many cases, including:
-
Interim Health Care of Northern Illinois v. Interim Health Care,
225 F.3d 876 (7th Cir. 2001), a federal court of appeals victory on
the application of the doctrine of good faith & fair dealing to
franchise terminations and the referral of national account business
regarding patients in a defined territory.
- Brodsky v.
Cash Converters (American Arbitration Association). Successful
representation of area developer and franchisee on claims for
fraudulent inducement based on false earnings claims.
- Home Repair,
Inc. v. Paul W. Davis Systems, Inc., 2000 U.S. Dist. LEXIS 929
(N.D. Ill.). Successful prosecution of civil rights claim under 42
U.S.C. §1981 for
racial discrimination in denial of a franchise opportunity.
- FBN v.
Sizzler Restaurants Int.. Representing the owners of the entire
Chicago market in fraud claims against franchisor, and defense of
related termination proceeding, including successful mediation. The
case involved alleged fraud in the inducement and alleged failure to
maintain system standards.
- Patel v.
Baskin-Robbins, USA Co., 264 F.Supp.2d 607 (N.D. Ill. 2003),
where the federal district court scheduled an evidentiary hearing to
determine whether the franchisor was guilty of selective enforcement
of its non-compete clauses
- Multiple
lawsuits involving national brands.
KNOW THE LAW
We strongly encourage
all franchise and potential franchise clients to “know the law” with
respect to franchising. |
