Franchisor’s Claim Under the Expropriations Act Related to Closure of Franchised Restaurant
Matter involving the quantification of losses of a franchisor due to the expropriation of the property from which a franchised restaurant operated and was therefore required to close.
Our work in this matter included identifying, collecting and analyzing the relevant financial documents and legal agreements, preparing an expert report and reply report detailing our estimate of the franchisor’s losses and comments on the opposing expert’s report, respectively, and attending mediation.
This case involved many complex financial issues related specifically to the franchising industry, including estimating the impact of a planned renovation on the franchisee’s sales revenues absent the expropriation and estimating the franchisee’s lost royalties, rebates, administration fees, advertising fees, and renewal fees. CHS’ analysis and input was instrumental in this matter settling during the mediation proceeding.