El Pollo Loco Verdict Hinges On Good Faith, Fair Dealing

By Steven Yatvin (June 5, 2018, 4:24 PM EDT) -- On May 1, 2018, a California jury awarded an El Pollo Loco Inc. franchisee over $8 million in an encroachment dispute.[1] Encroachment disputes arise when a franchisor sets up a new store in some degree of proximity to an existing franchisee. I say "some degree of proximity" rather than "in the territory of" because lawsuits arise even when the franchisee does not have rights to exclusive territory.

That is what happened in Bryman v. El Pollo Loco Inc., pending in the Superior Court of the State of California, County of Los Angeles. The franchisee had no exclusive territory rights, yet it...

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