Barker & Cook, P.A. issued the following announcement on June 21.
When two or more companies in Florida or elsewhere enter into a long-term business arrangement, they may wish to set clear terms concerning how profits will be shared before signing a contract. Should either party attempt to change the terms of such an agreement without informing its partners, complex contract disputes may ensue. Crossfit Inc. has reportedly filed a lawsuit against Reebok accusing the company of breach of contract.
According to reports, the two companies entered into a 10-year business partnership in 2010. In the arrangement, Crossfit agreed to give Reebok exclusive rights to sell its products in exchange for royalties on net sales of the associated merchandise. However, several years into the partnership, Crossift claims it discovered that Reebok had altered the way that it calculated these royalties without informing the company.
Crossfit claims that the change was made in violation of the initial agreement, and that it has suffered severe financial losses in the process. The company claims that it has been denied nearly $5 million in royalties owed as a result. Although Crossfit has also accused the other party of attempting to steer customers to its own website to reduce the amount owed in royalties, Reebok reportedly denies any wrongdoing.
Disputes between business partners can be highly contested matters. When a breach of contract occurs, a business owner could choose to consult with an attorney for advice on the best course of action with which to proceed. An attorney can evaluate the contract thoroughly, and if a breach has occurred, assist a client in Florida in pursuing the full amount of compensation to which he or she is entitled to receive.
Original source can be found here.
Source: Barker & Cook, P.A.