When a business is starting out in Tennessee or in another state the time will come when one must enter into business contracts with vendors, customers, clients or others. Some new business owners try to stay away from anything as formal as a written agreement because they think that this will plant the seeds for future trouble and conflict. Just the opposite is true, and in fact, the incidence of business litigation is reduced by implementing contracts for clarity and mutuality of intention.
Entrepreneurs in Tennessee and elsewhere may have the good fortune to enter an industry that is popular with the public and growing rapidly. Their company, however, may be unable to keep up with the pace of growth in the industry. It may, for example, fail to meet the fast demand for products by the consuming public. One popular and sometimes wildly successful remedy is to franchise the business model on a regional or national level. This is a popular way for some entrepreneurs to rise to the top quickly, but the risks of business litigation along the way must be guarded against.
Litigation between business entities in Tennessee and elsewhere involves many different kinds of business law disputes. Often at the heart of a business litigation conflict, however, is the plaintiff's claim that the defendant business has breached its duties under a contract between them. Sometimes, the claim can be filed on the anticipation that a breach is being planned by the other side, which may be characterized as a claim of anticipatory breach of contract.
The courts in Tennessee and other states are familiar with the area of business litigation that deals with franchise law. A variety of conflicts arise in the context of retail franchise establishments, usually dealing with disputes between the franchisor and the franchisee. A recent court decision demonstrates how varied the conflicts can become in this busy area of business litigation.