• Franchise

I got franschise from one company last year & pair online. Agreement was given to me on white paper. They said they will do stamp paper agreement but dint do. I started work with them but the support things promised never happened. Now I wanted to start of my own so I spoke to one of their clients submitted directly to client. they have now holder my commissions & franchise amount too worth lakhs. I want them to pay atleast some part of it. They are not responding to email they blocked account too. How can I take it legally.
Asked 4 years ago in Business Law

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11 Answers

Sir issue a legal notice to the said company for refund of you amount as they breached the agreement and never supported the franchise business. In notice claim refund and damages.

Further the agreement signed without stamp paper can be considered valid as proof of transaction and promise.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

As the company is failed to finalize the franchise agreement you can file a criminal case against them in Criminal Court of your district under section [deleted] of IPC for keeping your money and commission and doink unfair trade practices

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Issue legal notice to company to pay your outstanding dues

2) if company fails to pay file summary suit under order XXXVII of code of civil procedure to recover your dues with interest

Ajay Sethi
Advocate, Mumbai
87976 Answers
6207 Consultations

5.0 on 5.0


The communication by them may form part of contract/agreement. You may sue them for recovery of money due to you. You are suggested to use the electronic mode of communication for this. First send a legal notice and no money is paid by them, file the case.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

You should file criminal complaint u/s 420 468 and also you can file recovery of money suit in civil court.

You can also file complaint in district consumer forum.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

Send them a legal notice through a lawyer calling upon them to release all your dues forthwith.

In case they do not comply with the above legal notice, file a suit against them or alternatively, if there is an arbitration clause in the franchise agreement which you signed with them, invoke the same by moving a notice of arbitration.

Vibhanshu Srivastava
Advocate, New Delhi
9427 Answers
245 Consultations

5.0 on 5.0

File criminal complain.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

1. even though agreement was not done on stamp paper, it was acted upon by the parties

2. you also proceeded with the work coming under the scope of franchise

3. so if you directly approach one of their clients without reference to the franchisor, then they would invoke the clauses in the franchise agreement which would take care of the event when the franchisee does something directly with the clients of the franchisor

4. the above may have prompted them to block your payments

5. you need to write to them that no work was solicited from their client by you in your personal capacity and request them to clear your dues

6. if they do not respond to your curtsey letter, then you can issue a legal notice after a week or so

7. then you will have to assess the situation based on their reply

8. eventually you will have to file a suit against them for recovering your dues - a summary suit would be in the anvil because the franchisor has admitted its liability to pay you the amounts under the franchise agreement

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0


Send them a legal notice and if they do not pay the same thereafter then file a suit against them in the local civil court.


Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

it is very difficult to take it legally without a valid contract. you can still try through the plain paper agreement in court. you can file cheating case against them. if they are private ltd company you can also approach National company law tribunal.

Prashant Nayak
Advocate, Mumbai
27291 Answers
88 Consultations

4.4 on 5.0

If you are aggrieved by their decision you may issue a legal notice demanding your dues, if you dont get a favorable decision then you may approach court or consumer forum for relief.

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

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