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I bought a franchise in 2015. From on set it never worked as…

Customer Question
I bought a franchise...

I bought a franchise in 2015. From on set it never worked as I close it last year November and reopen again March this year. Still not working so I close the business permanent now. I want to know how I can get out of agreement as its for 5 years and am unable to pay royalty-free

Lawyer's Assistant: Because employment law varies from place to place, can you tell me what state this is in?

It's Shisanyama franchise. Actually I never made any profit from beginning. I kept on asking for loans of which now I can't take it. They want a settlement of which I cannot afford

Lawyer's Assistant: Has anything been filed or reported?

Not yet. They only told me to bring their signage and I should know royalty-free is still binding though I have not being paying for month's

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

Not really. I opened the business on one place then close it. And try to move to another place more affordable rent but still it did not make any change. But the franchisor is aware of everything

Submitted: 7 months ago.Category: Legal
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Answered in 10 minutes by:
12/4/2017
Lawyer: Law Educator, Esq., Attorney replied 7 months ago
Law Educator, Esq.
Category: Legal
Satisfied Customers: 125,822
Experience: JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
Verified

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Unfortunately, once you signed that written contract, you bound yourself to the terms of the contract. Unless there is a clause in the franchise agreement that states you would be allowed to terminate the contract upon closing the business you would remain liable for paying as the contract states.

If you qualify for bankruptcy, then you could get the debt under the franchise agreement discharged, but if you signed a personal guarantee that would mean you need to file personal bankruptcy as well.

I am afraid though that since you have signed the franchise agreement, you remain bound to that agreement unless it has a clause allowing you to terminate.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

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DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

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