I received a Breach of Agreement letter from my franchisee. I have a few questions about it. I'm not so much concerned about the content, but some terminology, etc.
I'll copy the details I have questions about:
3. Breaches have occurred as follows:
4. These breaches have deprived us of substantially all the benefit of the Agreements.
You are therefore in repudiatory breach of contract.
5. Without prejudice to our rights noted below, by this letter, we are exercising our rights to terminate the Agreements at common law.
6. We will also seek damages of XXX, calculated by reference to the proportionate
term and franchise fees paid as follows: XXX
7. We reserve all our rights and remedies in relation to any breach.
8. We look forward to receiving an acknowledgement of receipt of this notice and your response no later than 31 December 2014.
Firstly, I'm concerned about the term "repudiatory breach of contract." what does this mean?
Does it mean that I have to assume that it is now ended and they no longer are in a contract with us?
Or are they telling me this is there assessment?
Ah right...no I definitely don't agree
Right...so if she carries out any tasks, etc, then she's suggesting that she doesn't accept a breach has happened?
So I should expect her to not be carrying out tasks?
Well now I'm concerned about the Franchise role that she should be performing...and the customers that are not being serviced
What can I do about this?
She has raised 10+ issues, for which I have concrete evidence are untrue. she hasn't given room to discuss these.
Ok. So just to be totally clear...the points 4 & 5, mean that she has ended the contract with us:
Should I consider them terminated as of yesterday?
In taking on the operations in their area, I am not inadvertently "accepting" the breach am I?
Also, I've penned this response, as we have a clause in our contract to involve a mediator/"Expert" in matters such as this. I was going to send the following:
We dispute your claim for termination due to breaches of contract and your claim for damages in your letter dated <date>. We have significant evidence to support our position and clearly demonstrate omissions, exaggerations and incorrect statements made in this letter. As already suggested on <date> and on <date> we would like to jointly appoint a mediation expert who specialised in franchise disputes to work with us both to manage a satisfactory conclusion of this matter. Our suggestion is that by <date> we jointly ask the Academy of Experts to appoint a mediator (http://www.academyofexperts.org/) and follow their code of practice through the mediation process.
Ok...however, I'm a little wary that I'm offering mediation, but then I'll be taking over the operations in her region....
Should I ask that she clarify this matter?
Are you there Alex?
Hi Alex, yes as I just said I'm a little wary that I'm offering mediation, but then I'll be taking over the operations in her region....
Should I ask that she clarify this matter with her, to confirm that she is no longer performing any operations?
No that's all thanks