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Ben Jones
Ben Jones, UK Lawyer
Category: Law
Satisfied Customers: 51227
Experience:  Qualified Solicitor
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I recently bought into a franchise. I was sold this very

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Hi I recently bought into a franchise. I was sold this very well and potentially a little naively bought into what I was sold as I was passionate about the concept. Fast forward a few months after my signature. The directors decide they can't work together, it transpires that in fact the franchise I bought into is no where near as mature as I had been led to believe. The directors are still not in agreement even though there has been talk of transferring ownership and shares.
I have also been made aware that although I paid the full amount for my franchise, some of the other franchise owners have not and therefore due to the situation now with the directors have been able to walk away due to their lesser investment. Do I have any protection legally to nil and void this franchise and seek a return on the amount that I have paid?
Kind regards,
Cassie Mather-Reid

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today.

How much did you put in?

Customer: replied 3 months ago.
Around £6k

Thank you. Your rights will very much depend on what you were promised and what you actually received. As a business investment, it is often impossible to give you any promises on potential returns or how the business may develop, so you will have to rely on factual statements, which were within their control, and which were misleading. In these circumstances, you can argue that they either misrepresented the position and in turn induced you to enter into a contractual relationship with them; or they had acted in breach of contract by not honouring what they had initially promised you. I all depends on the promises made, whether these were within their control and if they were actually telling the truth or ended up misleading you over these.

If you wanted to challenge them, you can always rely on any such misrepresentations to ask for your money back, or at least a proportion of it. If they refuse, you can take the matter to the small claims court, which is a relatively low risk option as even if you lost, you would not have to pay the other side’s legal fees and will only lose your court fees (around £750 in total).

Please take a quick second to leave a positive rating for the service so far by selecting 3, 4 or 5 stars above. I can continue answering follow up questions and in particular can also discuss the steps you need to follow if you wanted to take this further legally. There is no extra cost for this - leaving your rating now will not close the question and means we can still continue this discussion. Thank you

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Thank you. If a party wishes to pursue another for a debt arising out of a dispute between them, they can do so by making a claim in the civil courts. As legal action should ideally be used as a last resort, there are certain steps that should be taken initially to try and resolve this matter informally and without having to involve lawyers or the courts. These can be summarised below and it is recommended the following procedure is followed to try and progress this matter further:

1. Reminder letter – if no informal reminders have been sent yet, one should be sent first to allow the other party to voluntarily settle this matter.

2. Letter before action – if informal reminders have been sent but have been ignored, the other party must be sent a formal ‘letter before action’ asking them to resolve this amicably within a specified period of time, usually 7 to 14 days. They should be advised that if they fail to do contact you in order to resolve this matter, formal legal proceedings will be commenced to pursue them for the debt in question. This letter serves as a ‘final warning’ and gives the other side the opportunity to resolve this matter without the need for legal action.

3. If they fail to pay or at least make contact to try and resolve this, formal legal proceedings can be initiated. A claim can be commenced online by going to www.moneyclaim.gov.uk. Once the claim form is completed a copy will be sent to the other side and they will have a limited time to defend it. Once they are aware that legal proceedings have commenced it may also force them to reconsider their position and perhaps prompt them to contact you to try and resolve this.

As a final tip, it is always advisable to keep copies of any correspondence sent and received as the courts would like to refer to it if it ever gets that far.