Legal Question in Business Law in California

Franchise obligations

I am involved in a business where I pay ''royalties'' for operating using a ''system of teaching''

I believe it meets the three guidelines which make it a franchise.

I however have never had any of the benefits of purchasing a franchise. I only pay royalties.

The ''franchisor'' shy's away from the word franchise.

The franchisor has since passed away. I believe the contract was written as a personal agreement. His son has now taken over and is bullying the franchisee's to siphon monies in other ways than the ''royalties''

I own my business but the son acts as if he owns it. He demands that I do business in ways I believe are unethical.

If this is a franchise, what responsibilities does the franchisor have to the franchisee?

What recourse do I have?

Can I just walk away, although I may be in physical danger for doing so. He is very threatening and I believe him to be capable of terrible things.

How can I protect myself.


Asked on 8/05/02, 1:21 pm

3 Answers from Attorneys
Martin Snitow

Re: Franchise obligations

There are specific legal requirements for franchising. An attorney would have to review your contract and your operations to be able to say whether this is a franchise or what obligations each party may have.

If you would like to discuss this, please call me at 408-985-7575 or send an e-mail to [email protected]

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Answered on 8/05/02, 2:43 pm
Amy Ghosh Law Offices of Amy Ghosh

Re: Franchise obligations

I need to look at the Contract before I can advise...I am in Southern Cal...call me if needed 818-481-9284.

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Answered on 8/05/02, 3:15 pm
Chris Johnson Christopher B. Johnson, Attorney at Law

Re: Franchise obligations

Have an attorney review your contract(s) and past pattern of dealing with the company to determine what your rights and obligations are--this is necessary before any negotiations/talks with the son. If the son acts unreasonably, there are remedies for business interference and/or unfair business practices. Further, there are injunctions available if he is threatening something illegal.

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Answered on 8/05/02, 7:37 pm


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