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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Ive entered a 12 month agreement with a franchisor that I

Resolved Question:

I've entered a 12 month agreement with a franchisor that I wish to cancel. According to the agreement I can do this as long as I give them 1 months written notice which is straight forward but I give them a fixed royalty fee that they say i must continue to pay regardless of cancelling. However, nowhere o the agreement does it say that I must carry on giving them the monthly payments even if I cancel my agreement. So my question is, can they ask this from me, even though it is not clearly stated o the agreement?
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts :

Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply as this is not an ‘on demand’ live service, but rest assured I will be giving your question my immediate attention upon return. There is no need to wait here, you will get an email when I reply.

Alex Watts :

What do the terms say about paying the continuing fee please?

Customer: The agreement says that to cancel the 12 month agreement I need to inform then in writing, giving a 1 month notice. At the end of the agreement there are 'notes' about paying the fee. Which states that 12 monthly instalments of £225 are to be made.
Customer: There is nothing that states I have to continue paying the monthly fee regardless of cancelling 12 month agreement.
Alex Watts :

Then you do not have to pay.

Alex Watts :

The contract is binding on both parties.

Alex Watts :

It needs to be clear for both sides and therefore if they want to rely on the term about a continuing fee, the agreement needs to say that.

Alex Watts :

If it does not they can not seek payment.

Alex Watts :

The person who relies on a term must have it in the contract.

Alex Watts :

If they can not show it you do not have to pay it

Alex Watts :

Can I clarify anything for you about this today please?

Customer: Can I send you the agreement so you can it for yourself?
Alex Watts :

You probably do not need to - if it is not there, then you can just challenge them.

Alex Watts :

Ask them which clause they are reliant on

Alex Watts :

If they can not show you or it does not say - then you do not need to pay.

Alex Watts :

Does that help?

Customer: There is no clause that states I must continue to pay even after I've cancelled the 12 month agreement which incidentally I've nly been in since June 2013 and only started to pay royalties in November. So do I take it then, if it's not really clear then they can't do anything about it?
Alex Watts :

Indeed.

Alex Watts :

Can I clarify anything?

Customer: No, I think it's quite clear. Thanks for your help :)
Alex Watts :

If this answers your question could I invite you leave feedback on my service which I hope has been excellent today, if you need more information or help then please click reply.


Please remember that I am always happy to help if you have future questions, even if I am in Court I can normally respond within a few hours. For future information, please start them with ‘For Alex W’.


 


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Customer: Will do
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
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