In The NewsGeoff Shaw Argues Perception of Franchisees as Underdogs in Some Franchise Class Action Lawsuits Not RealityPublished: 01/19/2011 On January 18, 2011, Franchise lawyer Geoff Shaw was quoted by The Globe and Mail in "Revolt of the Franchisees," an article about the recent spate of high profile class action lawsuits launched by franchisees against franchisors. Mr. Shaw argues the David vs. Goliath perception underlying some of the franchise class actions is not reality. “Good franchise systems – and there’s tonnes of them out there, we buy gas at them, we buy groceries at them, we eat quick sandwiches at them – they generally work when franchisors and franchisees are all pulling on the same oar,” said Mr. Shaw. “There’s an understanding among franchisors that they are not in business to beat up or to somehow make their franchisees worse off,” he said. “They’re in business to make the franchisees better off, because when that happens [the franchisors] are better off.” Mr. Shaw said that the apparent increase in cases has more to do with the efforts of class-action lawyers to recruit plaintiffs than with alleged transgressions by big franchisors. He notes that the real test will be when one of the cases actually comes to a full trial. A judgment on the merits of a case would establish the hurdles plaintiffs need to surmount to actually win, and perhaps slow down the number of new cases being filed, Mr. Shaw stated. Geoff is a partner in the commercial litigation department where the main focus of his practice is the resolution of business disputes through trial, appeal, mediation or arbitration. One of Geoff's specialties is franchise litigation. |