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I have been running a greetings card franchise for the last…

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I have been running a...
I have been running a greetings card franchise for the last 3 years. During the course of the last few months and due to personal circumstances (suffering from an axiety disorder) things have not been going well. Now I understand from the franchisor's point of view they need to progress the business so a few months ago I found a buyer from one of my customers who i got on particularly well with. Unfortunately and beyond my control, he has taken quite some time to get to the end of the sale cycle. This was due solely to the length of time it took for him to recieve the necessary monies. I was in contact with the buyer, but not particularly in touch with the franchisor.

One of the symptoms of my anxiety disorder is a tendency to hide away from any potential confrontation and so I waited for the buyer to get his end sorted. 2 weeks ago the buyer stated that things were now settled and he asked me for a list of customers so he could go and take a look. This was provided to him and I was waiting for confirmation of him to prgress.

On Saturday i recived a letter from the franchisor stating that the franchise agreement was being cancelled with immediate effect. This morning i got a call from the buyer tellin me that he had been told by the franchise to go directly to them now. He then phoned me and asked me what he should do.

I phoned the franchisor and they kept saying that they did not want to talk to me and that anything I had to say on the matter needed to be written to them. They were aware of the both the anxiety disorder and the fact that this sale was in progress (hence speaking to the buyer) but stated to me that they did NOT know that this was occuring.

There is an outstanding debt to the franchise from me which i was planning to cover on the completion of the sale. They are now basically saying that the sale is to go through them and that i am liable for the outstanding debt.

Is there anything I can do about this as i have brokered this deal and they are now taking it away from me and will, if I am forced to pay, put me and my family in the hands of a debt management company.

Any advice would be great as I have no idea what to do. Damian
Submitted: 8 years ago.Category: UK Law
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Answered in 4 minutes by:
6/28/2010
Solicitor: Thomas Judge, Solicitor Advocate replied 8 years ago
Thomas Judge
Thomas Judge, Solicitor Advocate
Category: UK Law
Satisfied Customers: 33,990
Experience: Award winning lawyer with over 15 years experience
Verified

Hiya,

 

The key to this is in fact the franchise agreement and the terms as set out in that agreement - you really need to comply with these terms - personally from what you ahve said above I would be minded to contact the franshise company and try and see if you can sit down with either them or their representative to try and thrash throw a deal which would be mutually beneficial to both of you. Their approach at the moment appears to be nonsense

 

I hope that this helps

 

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Customer reply replied 8 years ago

Thanks for your reply.

 

I can understand from their point of view but does the fact I had been in process of brokering the deal with the buyer, that they have been aware of, not hold any legal standing? Even if I had not been as communicative (as I was waiting myself) as they would have liked, the deal was in progress?

Solicitor: Thomas Judge, Solicitor Advocate replied 8 years ago

Hiya,

 

Again it will depend on the terms of the franchise agreement - but morally I think it means quite a lot and hence my suggestion that you sit down with them and try to get all of this back on track. It may well be that you can give them an undertaking that you will pay on resolution or indeed have the money held by a solicitor at completion held to their order.

 

I hope that helps

 

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Customer reply replied 8 years ago
Sorry to be a pain, but I am trying to ascertain whether courts take moral arguments into consideration.
Solicitor: Thomas Judge, Solicitor Advocate replied 8 years ago

Hiya,

 

Courts will look to the contract to resolve something - a parties behaviour is also something a court will take into account especially where they have acted unreasonably.

 

I hope that answers your question

 

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Solicitor: Thomas Judge, Solicitor Advocate replied 8 years ago

Hiya,

 

I hope that this helps

 

 

All the Best

 

Peter

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