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Richard
Richard, Attorney
Category: Business Law
Satisfied Customers: 45533
Experience:  32 years of experience practicing law and a businessman.
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I had applied for a franchise that is headquartered in Texas.

Customer Question

I had applied for a franchise that is headquartered in Texas. The franchise fee was $11,000.00. I submitted an application that was emailed to me along with a check for $11,000. The application was basically a financial breakdown to be sure we were solvent and had enough assets to acquire the franchise. The application said "NO OBLIGATION". I was notified after the application and money was sent that I would have to review and sign a franchise agreement before I could get the franchise. In the meantime, I was notified with some personal news that I would physically not be able to undertake adventure at this time. Possible, not ever.
I notified the franchisor vis certified letter that I had received this news that would not allow me to move forward to sign a franchise agreement and obtain a franchise.
After 5-6 weeks with no response, I emailed the contact person that was handling my correspondence and a few days later was informed that my money was non- refundable.

My question is this:
Do I have a claim to sue for actual and punitive damages for their intent to defraud, can it be filed in Louisiana where I m domiciled and where they do business with a franchisee located here and what would be the Statute that allows me to file that claim?

Leon
Submitted: 1 year ago.
Category: Business Law
Expert:  Richard replied 1 year ago.
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.


Good afternoon. If they do business in Louisiana, you can file your suit against them in Louisiana. You do have recourse here. You should send them a certified, return receipt requested letter detailing the history and demanding that they refund your money in total within a short specified period of time. Inform them that if your demand is not timely complied with, you will have no choice but to file a suit against them for your damages. Be sure to specifically mention that you will be filing this claim not only as a breach of contract case, but also as a deceptive trade practice action, which will entitle you not only to your damages, but also an additional amount equal to 3 times that as punitive damages. That should provide plenty of incentive to comply with your demands; but, if it does not, file your suit.



Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!

Customer: replied 1 year ago.

Your information is very informative and reinforces what I had thought I needed to do. However, before I finalize the transaction, I want to be sure that having a franchisee in Louisiana that they collect royalties from still allows me to sue in Louisiana. I will add extra money for your quick and


excellent response. Once this question is answered, I will send you another.


 


Leon

Expert:  Richard replied 1 year ago.
Thanks for following up. Yes, if they have a franchise in Louisiana from which they are collecting royalties, this establishes the "minimum contacts" that are necessary in a state to allow you to sue them in that state.
Richard, Attorney
Category: Business Law
Satisfied Customers: 45533
Experience: 32 years of experience practicing law and a businessman.
Richard and 5 other Business Law Specialists are ready to help you
Expert:  Richard replied 1 year ago.
Thanks so much for the positive rating and the bonus! I appreciate your generosity and the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help!

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