Franchisee versus Company
I had a franchisee of a leading laminates and plywood brand. Company proposed very appealing and lucrative business scheme with high profits, which motivated me to go ahead with this. Company had sent the agreement on mail, and company told me that agreement will be done subsequently done, meanwhile we can proceed with the construction of franchisee store. Based on this I purchased appropriate shop as per their requirement and initiated furniture work, etc. Company didn’t signed the agreement even till the opening of the store(JULY 2015)and finally it was signed in September. The agreement which was signed in September was completely biased and different from what they had sent me on mail. I had no option but to move ahead since I had invested so much till then. Company failed to provide direct sales support , and proper salesteam, and assure turnover as they promised in the agreement from the first day. Also the initial setup cost was 46 % higher than what they had proposed. Company provided on 10 % of the promised sale as a result I had suffered 6 Lacs loss in 6 months. It was not possible for me to pour in more funds from savings. I was in constant touch with the company management from day 1 of the franchisee regarding their inefficiency to provide what they had proposed or promised, but they never had any solution to that. I had been made all my attempts and finally I informed the company about temporary closure of the store till they come up with solution. Instead of working on it, Company via email notified me to shut down the store. Altogether I have suffered a loss of Rs 17 lacs (5.0 Lacs-deposit, 7.5 lacs furniture, 5 lacs – running expenses.) Please guide me what all measures can be taken against company.