Distribution & Franchising

Overview

Distinguished by our unsurpassed level of experience in this complex area, we are Puerto Rico’s preeminent Distribution & Franchising practice team. 

Because Puerto Rico imports most of its consumer products from the United States and other countries, manufacturers and suppliers alike depend on dealers and sales representatives to help them tap into the Puerto Rican market.

Puerto Rico has enacted two public policy laws to protect local commerce: Act 75 and Act 21. Both laws aggressively protect distributors and sales representatives from termination by their principals, by forbidding at-will terminations and impairments of relationships without just cause and by providing for injunctive relief and damages. McConnell Valdés delivers comprehensive counsel – from drafting distribution and representation agreements to full-scale litigation support -- in all areas affected by these two laws. We also advise franchisors and franchisees seeking to establish franchised business in Puerto Rico.

Our Distribution & Franchising team includes corporate lawyers and litigators ranked among Puerto Rico’s leading attorneys by Chambers and Partners in both its Global and Latin American Guides and listed among The Best Lawyers in Puerto Rico.

What We Do

Our Distribution & Franchising team lawyers:

• Advise on negotiations of modification or termination of relationships
• Counsel on and draft distribution, sales representation and franchise agreements.
• Defend claims arising from distribution, franchise and sales representation contracts.
• Advise clients on similar laws in other Caribbean and Latin American jurisdictions
• Keep clients informed by offering seminars on Act 75

Representative Clients & Matters

• Representation of one of Puerto Rico’s leading food & beverage distributors as respondents in arbitration and subsequent court litigation of a breach of contract dispute pertaining to the distribution of a major distilled product line.  The client’s claims exceed $30 million dollars in damages based primarily on a termination without cause barred by Act 75, Puerto Rico dealer protection statute.

• Representation of a European auto maker in a distribution and tax litigation involving a claim filed against it by its Puerto Rico distributor before the U. S. District Court for the District of Puerto Rico. 

News & Publications