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UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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I was in a franchise business from july 2007 and my franchiser

Customer Question

I was in a franchise business from july 2007 and my franchiser has terminated the contract with me on the 1 of feb 2013 the reason was that I was late with the management fee payments late few times during this period and only for a few days. when I was informed my franchiser that I would like to sole my business ( my right due to the contract) he become very aggressive to me , and after few days from this information he terminated the contract and left me with nothing and make me bankrupt. I have an estimation of my business as I was using a professional company to help me to sole my business 100k I have a proof of every emails between my franchiser and myself and also I can proof that I wasn't not only one person with payments late. please any chance to resolve this ?
Submitted: 4 years ago.
Category: Law
Expert:  UKSolicitorJA replied 4 years ago.

If you are not getting anywhere with the franchisor, you would have to go to court for the court to determine whether the contract was lawfully terminated and what your rights would be in the event that the termination was lawful/unlawful.

Unfortunately, the fact that the franchisor has not terminated another franchise agreement in similar circumstances to yours does not help your case, as that is a matter for the franchisor and the other franchisee.

In your case, you need to see what the wording of the franchise agreement is to ensure that the franchisor had the right to terminate it in the event of late payment of the management fees.

If there was no right todo so, then you may claim damages from the franchisor for breach of contract so that you are put in the same position that you would have been had teh contract not been improperly terminated.

If the contract was validly terminated, then I am afraid you would have no recourse against the franchisor other than what is set out in the agreement.

Hope this helps