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Ask JGM Your Own Question
JGM
JGM, Solicitor
Category: Scots Law
Satisfied Customers: 11442
Experience:  30 years as a practising solicitor.
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I recently agreed to take on a franchise with a company and

Resolved Question:

I recently agreed to take on a franchise with a company and paid the deposits, franchise fee's and 1 month upfront rental of the equipment needed to carry out the work.

I was operational for 4 weeks when i realised the reputation of the company was not what was described to me during initial discutions. After a bit of researching i found out the MD has a reputation for being untrustworthy.

I never got round to signing the Franchise agreement and decided to hand back all equipment and anything else i had from them as i didnt want to be associated with their company.

Would i be entitled to the return of my deposits? Which were decribed as returnable after termination of the franchise contract, as i had no signed agreement can i claim all my money back minus reasonable costs?
Submitted: 3 years ago.
Category: Scots Law
Expert:  JGM replied 3 years ago.
Thank you for your question.

The deposits are presumably not payments for anything in particular and they are just deposits as security against monies which may become due from time to time under the contract. That being the case you are entitled to them back. You have also been sold something as a result of misrepresentation which would allow you to treat the contract, such as it is verbal at the moment, as void.

Happy to discuss further.

I hope this helps. Please leave a positive response so that I am credited for my time.
Customer: replied 3 years ago.

Many thanks for your answer, the sum involved is approx £5k what would be a ballpark figure to resolve this if i have to go down the legal route?


 


I would be happy with the return of my full deposit and franchise fee's minus any reasonable costs incured.


 


I have an email from them confirming everything returned was in order and the unsigned copy of the franchise agreement.


 


Regards


Dave

Expert:  JGM replied 3 years ago.
A solicitor will charge for this type of work on an hourly basis and rates vary but typically to take this all the way to a hearing would be about £2500 plus VAT. If successful you would get about 60% of your costs back in judicial expenses.

£5000 or less would come within the ambit of Summary Cause procedure and you could consider completing the court forms and dealing with this yourself. Form, guidance and rules are at www.scotcourts.gov.uk
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