Legal Question in Business Law in Pakistan

Hello,
I am writing from Pakistan and I need advice.
I am a franchisee of Yogen Fruz, an International frozen yogurt brand from Canada.
Yogen Fruz granted master franchisee(sub franchise) to a company here in Pakistan recently and I became their first franchisee to open an outlet of Yogen Fruz.
My problems are as follows:
The master franchisee is struggling to operate the brand. He does not have any prior experience in this field as he is from a construction background.
He doesn't provide any information about the allocation of advertising fund which franchisee's pay 4 per cent on sale. In fact they don't advertise at all for unit franchisee's, instead they are still advertising to sell more franchises with our money.(advertising manipulation)
The master franchisee is always having health problems and is always out of the country for months.
All the franchisee's(at this point there are 7 operating in the country) are running at a loss.
They experiment when different strategies and fail which causes franchisee's more loss.
Employees in their company have also stated that the master franchisee can not operate the brand for more than a year because of lack of experience in the field.
All the franchisee's have been fooled by misleading facts and figures and most of them are preparing for legal action.
What I would like to know is if all the franchisee's get together and we decide to proceed with legal actions for fraud and mismanagement which has caused the downfall of franchisee's, do we sue the master franchisee or the parent company in Canada who has granted the region master franchise to such a person who has made a lot of money from sell franchises but franchisee are running at a loss because of his lack of experience and mismanagement and frauds?

Asked on 7/08/13, 11:18 am

2 Answers from Attorneys

Adnan Bashir A B Choudry Law Firm

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you should sue both the companies, parent as well as domestic company.. there are various remedies bailable for you people, including an application to competition commission, civil suit and criminal breach of trust etc.. for more i would like to have a look on agreements, brochure ,MOU and MOA etc.

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Answered on 7/08/13, 12:45 pm

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