distributorship vs corporation

F

food distributor

Guest
Jurisdiction
Illinois
I have a food distributorship in central IL. The corporation delivers fresh prepared/packaged meals twice a week to our location and we either deliver to our customers or they come in and pick up. We maintain an office for the pick up customers. We submit orders electronically to corp through an online order system. Over the past year the corp has been pushing all offices to enter email addresses/name & address in their online ordering system. Now the corp is sending email blasts to our customer list to encourage home delivery direct from the corp and bypass the distributor. Our business has dropped almost 50% in the past 18 months because of this. In addition, as a distributor we are required to spend $2000 a month on advertising for the corp. Do we have any legal standing to stand on since they are driving our business away?
 
I have a food distributorship in central IL. The corporation delivers fresh prepared/packaged meals twice a week to our location and we either deliver to our customers or they come in and pick up. We maintain an office for the pick up customers. We submit orders electronically to corp through an online order system. Over the past year the corp has been pushing all offices to enter email addresses/name & address in their online ordering system. Now the corp is sending email blasts to our customer list to encourage home delivery direct from the corp and bypass the distributor. Our business has dropped almost 50% in the past 18 months because of this. In addition, as a distributor we are required to spend $2000 a month on advertising for the corp. Do we have any legal standing to stand on since they are driving our business away?

Have you read your distributor/franchise contract?
I suggest you take it out, refresh your recollection, especially the section that ALLOWS the corporate office to do as they've chosen to do.

Yes, the action of the corporate parent might be in contradiction with your contract, but I doubt it.

On the other hand, as you read he contract, I suspect you won't find the section that REQUIRES you to collect email addresses of your customers.

If that requirement is missing, simply stop asking for email addresses.
Problem solved.
 
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