Franchisor responsibility?

I recently provided some goods to a business that is the fanchisee of a large corporation.

Unfortunately, the cheque for the goods has bounced, and the franchisee has gone into liquidation.

Can I seek to claim anything off of the parent company that sold the franchise to the business who obtained these goods from me as it does not appear that the fanchisee is in a position to pay this debt?
 
F

fastfences

I sincerely doubt it. The franchisee is its own entity and not purchasing in collusion or partnership with the parent company. You've done your dough, unfortunately.
Are there receivers for the company?

The parent company may have some type of debt 'fund' for franchisees. Give them a call.
Cheers, Nigel
 
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Hi,

I've been in touch with the receivers already, but it seems that the franchisee has run up quite a lot of debt and I'm unlikely to get much if anything from the liquidation of its assets.

Oh well, it was just a thought, I'll just need to write it off and get on with things.

Thanks for your reply.
Tom
 
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F

fastfences

Hi TMB,

Yeah, you've got the right attitude, although it's still painful being ripped off. I have my own battle at the moment over £1700 of fencing. My main recourse is to seize the fence, i.e. reclaim my materials. Bit drastic, but at least I'll be able to use some of the stuff. But you've got nothing.

They say we learn from this. Learn what? Not to be trusting? You can't run a business without a certain element of trust. So what do we do? Choose to whom we give credit? Everyone has a smile on their face at the point of sale. But there are 2 smiles; one is the 'I'm so happy to deal with you smile' and the other is the, 'I'm going to rip this bastard off,' smile. I guess most on this forum can attest to this!

all the best, Nigel
 
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