Expropriation of a Franchised Grocery Store for the Construction of a New Subway Line

Matter involving an estimate of franchisor’s disturbance damages due to the expected closure of a franchised grocery store resulting from expropriation of the property from which the store operates.

Our work in this matter included identifying, collecting and analyzing the relevant financial documents and legal agreements, follow-up questions and discussions with the client, and preparing an expert report setting our estimate of the franchisor’s disturbance damages and the information and factors we considered in coming to our conclusions. 

This case involved many financial issues related specifically to the franchising industry, including estimating the franchisor’s lost franchise fees, gross margin on sales to the franchisee, volume rebates, and advertising fees.  A thorough review and understanding of the relevant legal agreements between the franchisor and the franchisee such as the Franchise Agreement and Sublease Agreement was required in estimating the losses.