Business & Commercial Law FAQ - Master franchisor is refusing to accept his responsibility to ensure that poaching does not occur?
Date: March 03, 2011
Q. I am a franchisee and paid good money for the franchise which I operate. Recently it came to my attention through a number of other franchisees that the master franchisor is refusing to accept his responsibility to ensure that poaching does not occur. What should I/we do in the circumstances?
A. Franchise agreements exist to protect the franchisor and franchisee. Given that there are a vast number of franchises the first thing you should do is seek the services of a competent franchise solicitor. Basically you should put the franchisor on notice either by yourself or in concert with other franchisees pointing out the nature and extent to which poaching is going on and the action you wish the franchisor to take. If this fails then you are entitled to rely upon the Franchising Code of Conduct and the franchise document to ensure that the franchisor abides by his responsibilities. Of course you are entitled to seek both legal and equitable remedies in these circumstances. Mediation should also be considered.
