J
James67
- Original Poster
- #1
Hi all,
I joined a franchise in 2004 and there is a great difference between what was expected from the franchisor and what the reality is.
Many of his promises were vague or implied however there are 2 points that I think may constitute misrepresentation.
Firstly I believed that they were a member of the British Franchise Association, as it said so on their invoices prior to my signing with them, however after attempting to contact BFA for concilliation it turns out they ceased to be members just before I signed, and continued to feature the claim "BFA associate member" on all their invoices for some time afterwards.
Secondly, we were inticed into starting training with them on the basis that the franchise cost £6,500 and always intended to join the franchise. Training costs would be deducted if we signed. It then became apparent that the true cost was over twice the advertised amount, with the second part being an amount paid monthly, the franchisor often chose to ignore this fee completely when promoting the idea of signing the franchise agreement, or if pushed described it as a managment fee.
Set up costs have been far higher than estimates, we have remortgaged twice in 1 year, and are now up to 100%, the only way my business will survive is if I can leave the franchise, and continue to trade under my own name (which i do now anywat as there is no recognition in the marketplace of this franchise name, I am effectively on my own but tied to use the franchisors appointed suppliers ) but if I walk away and he threatens legal action would I be able to countersue for misrepresentation?
I feel very strongly that morally I am in the right, but ultimately i can't really afford a legal battle unless i know my case is watertight. I appreciate that first advice would be 'contact a lawyer' but thought someone here may be able to tell me if this would be a waste of my time and money before I invest in one.
Sorry for the long post, but if someone could help it would be appreciated!
Thanks
I joined a franchise in 2004 and there is a great difference between what was expected from the franchisor and what the reality is.
Many of his promises were vague or implied however there are 2 points that I think may constitute misrepresentation.
Firstly I believed that they were a member of the British Franchise Association, as it said so on their invoices prior to my signing with them, however after attempting to contact BFA for concilliation it turns out they ceased to be members just before I signed, and continued to feature the claim "BFA associate member" on all their invoices for some time afterwards.
Secondly, we were inticed into starting training with them on the basis that the franchise cost £6,500 and always intended to join the franchise. Training costs would be deducted if we signed. It then became apparent that the true cost was over twice the advertised amount, with the second part being an amount paid monthly, the franchisor often chose to ignore this fee completely when promoting the idea of signing the franchise agreement, or if pushed described it as a managment fee.
Set up costs have been far higher than estimates, we have remortgaged twice in 1 year, and are now up to 100%, the only way my business will survive is if I can leave the franchise, and continue to trade under my own name (which i do now anywat as there is no recognition in the marketplace of this franchise name, I am effectively on my own but tied to use the franchisors appointed suppliers ) but if I walk away and he threatens legal action would I be able to countersue for misrepresentation?
I feel very strongly that morally I am in the right, but ultimately i can't really afford a legal battle unless i know my case is watertight. I appreciate that first advice would be 'contact a lawyer' but thought someone here may be able to tell me if this would be a waste of my time and money before I invest in one.
Sorry for the long post, but if someone could help it would be appreciated!
Thanks
