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Max Lowry
Max Lowry, Advocate
Category: Law
Satisfied Customers: 1457
Experience:  LLB, 10 years post qualification experience
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I ran a franchise for 5 years and when the renewal came up

Customer Question

I ran a franchise for 5 years and when the renewal came up the franchise company said that they would not renew for various reasons such as a high number of complaints/lack of advertising etc.
I have questiones these claims as for example to my knowledge i have had two complaints during the 5 years and spent the required amount on advertising. Other allegations have been challenged as well.
I have emailed and written to the MD on more than one occasion but had no response. Surely he should have to substantiate these claims if challenged.
I have also asked about the process re selling the franchise but again this has been ignored.
How do i obtain answers.
Thank You
Submitted: 4 years ago.
Category: Law
Expert:  Max Lowry replied 4 years ago.

Max Lowry :

Hi, welcome to Just Answer. I will help you with your question.

Max Lowry :

Whether you have the right to renew depends on the terms of the franchise agreement.

Max Lowry :

However, it's common to see a clause in properly drafted franchise agreements requiring the franchisor to be satisfied about the services delivered (i.e. no complaints) etc. before the right actually can be used.

Max Lowry :

So the franchisor usually has some discretion in the renewals process.

Max Lowry :

However, I cannot emphasise enough that this is down to the wording in the agreement and I've seen some pretty relaxed agreements, which don't do things this way, forcing the franchisor to renew too.

JACUSTOMER-tgxxltgf- :

Surely he should have to be able to substantiate his claims

Max Lowry :

Yes, they should be.

Max Lowry :

If they cannot, then query whether there are any at all! Then, if there are no sustainable complaints etc., there would be no ground to refuse the renewal.

JACUSTOMER-tgxxltgf- :

How do i get him to do so as all attempts to contact him have been ignored?

Max Lowry :

You need to threaten him with an application to the Court for specific performance of the franchise agreement - in other words, ask the Court to force him to renew the agreement or declare that it has been renewed by you doing everything you needed to have done.

Max Lowry :

If he fails to respond then, I would suggest you get a solicitor involved and get them to write to him. Most franchisors will reply once solicitors are instructed, as they don't usually like to end up in costly court battles.

Max Lowry :

And if he refuses to give details of complaints etc., then you can ask the Court to order disclosure under Rule 31.16, pre-action disclosure, which it is likely to do in the circumstances.

Max Lowry :

I hope this answers your question. If you need further information, just let me know. Please do remember to rate my answer as highly as you can.

Max Lowry :

Does this answer your question?