EPISODE · May 30, 2026 · 11 MIN
Why Franchise Litigation Is Spiking in 2026
from Franchise Conversations with Fexingo: Buying, Running, and Scaling Franchise Businesses · host Fexingo
Franchise lawsuits are up 40 percent year-over-year in 2026, according to the American Arbitration Association. Lucas and Luna dig into two specific cases: a fast-casual brand that sued 12 franchisees for underreporting revenue, and a fitness franchise where the franchisor was found liable for misrepresenting protected territories. They break down the three contractual clauses that trigger most disputes—royalty underpayment, encroachment, and non-compete enforcement—and explain what prospective franchisees should look for in their disclosure documents. The episode closes with a practical checklist: five line items in the Franchise Disclosure Document that predict litigation risk. Specific, actionable, and grounded in real filings. #FranchiseLitigation #FranchiseDisputes #FranchiseLaw #FranchiseDisclosureDocument #RoyaltyUnderpayment #TerritoryEncroachment #NonCompeteClauses #FranchiseArbitration #Business #FranchiseConversations #FexingoBusiness #BusinessPodcast #FranchiseeRights #FranchisorLiability #FastCasual #FitnessFranchise #LegalRisk #FranchiseDueDiligence Keep every episode free: buymeacoffee.com/fexingo
What this episode covers
Franchise lawsuits are up 40 percent year-over-year in 2026, according to the American Arbitration Association. Lucas and Luna dig into two specific cases: a fast-casual brand that sued 12 franchisees for underreporting revenue, and a fitness franchise where the franchisor was found liable for misrepresenting protected territories. They break down the three contractual clauses that trigger most disputes—royalty underpayment, encroachment, and non-compete enforcement—and explain what prospective franchisees should look for in their disclosure documents. The episode closes with a practical checklist: five line items in the Franchise Disclosure Document that predict litigation risk. Specific, actionable, and grounded in real filings. #FranchiseLitigation #FranchiseDisputes #FranchiseLaw #FranchiseDisclosureDocument #RoyaltyUnderpayment #TerritoryEncroachment #NonCompeteClauses #FranchiseArbitration #Business #FranchiseConversations #FexingoBusiness #BusinessPodcast #FranchiseeRights #FranchisorLiability #FastCasual #FitnessFranchise #LegalRisk #FranchiseDueDiligence Keep every episode free: buymeacoffee.com/fexingo
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Why Franchise Litigation Is Spiking in 2026
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