i have taken a franchise before 6 month and still there business is not started i have taken franchise for internet service provider they told they will start within 1.5 month and its clearly written on the agreement and i have opened office before 5 month and my expenses were running day by day and they still telling me that they will start tomorrow tomorrow i am really tired what possiblities of gettting the full money back with interest
Asked in Business Law from ajmer, Rajasthan
1. First be sure that they will not be able to start their business or you are no more interested to be their Franchisee,
2. If decided send a legal notice to them asking for the money you have already spent on them,
3. If not responded favourably, file a recovery suit before the Court.
Both the parties are bound by the terms of the agreement.
Since one and half month has already passed, legally speaking the other side is bound to compensate you for the delay it causes.
However the compensation may vary or differ if the agreement speaks of something else.
So before making any final comment, it is very important to look into the contents of the franchisee agreement especially compensation part.
1) what are the contents of the franchisee agreement ?
2) does agreement contain a clause that in the event work of internet service provider is not started in 45 days you will be paid compensation ?
3) does agreement contain an arbitration clause . ?
4) what are the clauses relating to termination of contract ?
5) contact a local lawyer . only after going through the various clauses in the agreement the next course of action should be decided based on legal advice
Only after knowing the contents of the franchisee agreement opinion can be given.