franchise agreement breached

franchise agreement breached

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Hi All,

I am in a franchise dispute cutting a long story short the director of the company breached the franchise agreement, I paid my money and did not

get what's written in the franchise contract. The director made an offer to pay me the money back but on the term that I do not make any comment about

the failed franchise in any forum ever even if it's indirectly towards her company and her name personally.

She want me to be Personally be liable as well as my company should I breached the settlement terms, she only wants to be commercially liable and not personally  which I feel its unreasonable.

I've decline the offer and want to take court action instead because I do not wish to be personally liable. The fact that she misrepresent her success and her company's.

When we were in discussion about having a franchise business together, I did not have my limited company yet in fact she told me that I will need to register a limited company before I signed the franchise contract.

The company director already has a company in liquidation and has two CCJs against the liquidation company that is the company I was  to franchise under, I did not know at the time that I was working under the term and conditions of a liquidated company. I signed the franchise contract under her other company which has the same name sounding as the liquidated company, she's since change the active company to a different name and re-branding since I told her I was taking legal action towards her and that it is illegal to have another company under the same name branding as a liquidated company.

She has made personal promise that my company will succeed under her guidance because her company has succeeded and she won some business awards, it was on that count that I sign the franchise agreement.

My question would I be able to take legal action against both her personally and her limited company? 

Thanks

Marie

Replies (4)

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By cparker87
16th Aug 2015 22:51

google
You needed to google solicitor instead of accountant.

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By hje
16th Aug 2015 22:53

I

think you need a solicitor specialising in Commercial and Company Law : http://solicitors.lawsociety.org.uk/search/results?UmbrellaLegalIssue=LI...

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By abaco
17th Aug 2015 07:51

Leave!

Judging from the state of the Franchise company's affairs you describe you should just take the money and run.

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Glenn Martin
By Glenn Martin
17th Aug 2015 13:10

Who wins in a legal case.

You don't mention the sum of money involved but unless its very large I would be attempted to do as said above and take the cash now and get on with your life. If you go legal it will cost you an arm and a leg to get to court and if you win you rarely get awarded costs, even if you do they usually only pay over 40% of what your costs actually are (which don't include your time either). from what you say the franchise is a stinker so if you sue you may find they disappear without paying you anyway. The non disclosure agreement may well be difficult to impose as if you felt the need to point to others to stay away from the franchises there are ways and means of doing that and remaining confidential. Franchise forums are full of disgruntled ex franchisees who vent about what went wrong, all of which will be subject to the same terms they are trying to get you signed up to. I take it they are not members of the BFA.

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