Business & Commercial Law FAQ - Purchased Franchise Business - Claims by Franchisor?
Date: March 03, 2011
Q. About six months ago I bought a franchise business and it is obvious that the claims made by the franchisor are not and could never be met. In addition 50% of the annual franchise fee is to go to promotions and advertising with very little of this having been done. What are my options and can you help me?
A. Yes. Although there can be any number of remedies you could either rescind the contract, sue for reach of contract or sue for misleading and deceptive contact under the Trade Practices Act. Competent legal assistance is required to either restore you to your former position or to obtain damages.
