Franchising and Licensing
Franchise networks and licensing agreements involve initial fees, royalties, advertising funds and purchase obligations that, together, define the economics of the relationship between the parties.
Industry context
Disputes arise when a franchisee challenges the projections it received, the use of network funds, or the calculation of fees, and when a franchisor claims amounts owed for default or termination.
SGEx acts in this environment as a technical firm, engaged when the industry produces disputes, inquiries, reviews, losses, buyout claims, fraud, rendering-of-accounts matters or valuations that call for an independent examination.
Questions that arise in this industry
- Calculation of royalties, fees and advertising-fund contributions.
- Rendering of accounts for the use of network funds.
- Comparison between projections presented and results actually obtained.
- Quantification of losses arising from contract terminations.
- Audit of fund transfers and purchase obligations.
How SGEx Approaches This
SGEx may examine: sGEx typically reviews the franchise disclosure document, contracts and operating manuals, unit-level billing reports, fund statements, supply invoices and the parties' financial statements.
Every engagement begins by framing the technical question, continues with the organization of these sources, and ends with conclusions presented in the format the proceeding requires, with assumptions and limitations disclosed.
Possible Work and Deliverables
The format is defined according to the case, the proceeding and the purpose of the work.
- Expert opinion
- Contractual indemnity calculation
- Expert report
- Review of calculations
- Expert questions and technical submissions
- Statement of accounts
Other SGEx Solutions
Services, specialties, contexts and industries connected to this topic under SGEx's relationship matrix.
Related Services
- Economic and Financial Expert AnalysisAnalysis of values, cash flows, economic assumptions and financial models in disputes and decisions that turn on quantification.
- Disputes, Litigation and ControversiesEconomic, financial and accounting expert support in judicial, arbitral, administrative and pre-litigation controversies.
- Accounting Expert ExaminationIndependent expert examination of accounting records, financial statements and calculations, prepared for judicial, arbitral and administrative proceedings.
- Forensic AccountingReconstruction and examination of accounting records and financial flows for evidentiary purposes, in contexts of suspected wrongdoing, conflict or inquiry.
- Financial and Operational AuditExamination of financial statements, processes and controls, focused on the reliability of information and adherence to defined criteria.
Related Specialties
- Contracts and Commercial RelationsEconomic and financial imbalance, contractual disputes, and commercial agency, distribution and dealership agreements.
- Rendering of Accounts and Financial ReconciliationExamination and reconstruction of accounts, reconciliations, and receivables, payables and balances among partners, officers and other parties.
Related Areas of Practice
- Civil and Contract DisputesNonperformance, termination, contract revision and civil liability claims in which the controversy turns on monetary values and calculations.
- Corporate and Shareholder DisputesDisputes among shareholders, partners and officers, corporate dissolutions, buyout claims and disagreements over financial results.
- Administrative and Regulatory MattersAdministrative proceedings and regulatory disputes with an economic and financial impact on companies and concession holders.
- Courts of Audit and Oversight BodiesProceedings before Courts of Audit, internal-control bodies and other oversight bodies that examine the use of public funds.
Related Industries
- Insurance and ReinsuranceClaims, loss adjustment, reinsurance treaties and disputes among insurers, policyholders and reinsurers.
- Construction, Engineering and InfrastructureConstruction works, engineering projects and infrastructure assets subject to cost, schedule and rebalancing claims.
- Cryptocurrency and Digital AssetsCustody, movement and recordkeeping of crypto-assets in investigations, disputes and asset-tracing engagements.
Request an Analysis
Describe the technical question, the context in which it arose, and the documents available. This information lets SGEx assess the scope of the work before any proposal.