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CaseLaw, Attorney
Category: South Africa Law
Satisfied Customers: 1534
Experience:  BCom; LLB; Masters in Law
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I'm a franchisee of an International Real estate group in

Customer Question

JA: What state are you in? It matters because laws vary by location.
Customer: I'm a franchisee of an International Real estate group in SA. About 3 years ago my franchisor allowed another franchisee to operate in my franchise area, but i'm not allowed to work outside of my designated franchise area. They have inserted a clause in the franchise agreement which allows this, but Is this legal?
JA: Has anything been filed or reported?
Customer: I've raised concerns with the franchisor, but not instituted legal action yet. They believe that they're within their rights, but my business has suffered significantly since another franchise's agents operate in MY designated area, which means business that should have come to my office goes somewhere else. in the end the franchisor gets their royalty even if not from my office but i dont see a cent of the revenue generated by group agents operating in my franchise area
JA: Anything else you want the lawyer to know before I connect you?
Customer: The "intruder franchise" has now been sold to another person and those same rights will be bestowed upon the new owner, who takes over the franchise putting a further burden on the expansion and stability of my business.
Submitted: 8 months ago.
Category: South Africa Law
Expert:  CaseLaw replied 8 months ago.
Hi there, Please can you type out the "grant" clause and the designated area clause which is contained in your franchise agreement. Can you also please explain what the other guys designated area is? Is there an overlap, or how does it work? Is there a definition for protected area?
Customer: replied 8 months ago.
thank you for your reply, can i forward the entire contract to you? Please send your email address if that's in order
Expert:  CaseLaw replied 8 months ago.

Hi again,

I don't need the full agreement, just those clauses. You can upload the agreement on this website and it will be secure!

Expert:  CaseLaw replied 8 months ago.

Hi there again,

I see that you've NOT yet read my answer. Do you still need assistance?

If you have a further questions please can you rate my answers above as positive; and then ask further questions if you need clarity on the answer provided.