Legal Question in Business Law in Florida

We bought a franchise in 2006 and its to expire on 3rd aug 2011. Because business had slowed down we fell behind on franchise fees, and as we were getting close to the expiring date the franchise owner asked us to pay the funds we told him that at present moment we do not have the funds but if he was patient we will pay and he said unless you catch up with the franchise fees we cannot let you continue the franchise name, and when it expires you take the name down and you go your way and we go ours no hard feelings. Now just 4 days ago he sends a email asking to take over the shop and he will purchase the assets but offset that for the funds we owe and send us on our marry way with out a cent. I did not agree to this because i have improved and developed that shop and its my shop, and he said that its in the contract that he will forward all documents to his attorney and he will come and take over the shop and send us our way without any funds and make us pay all legal fees. Can he really just walk into the shop and take over or does he have to get his attorney to take a court order to come into the shop, the lease is in our name and the shop and all assets are ours. He started to bully and harras and scare tactics to give him the shop. He is being nasty, what can he do ? what can i do to make him back off ?He has done this to some other stores, and some of them were afraid handed the keys and some just closed the door and take their assets and walk away. We were suppose to have let him know 6 months before wether we wanted to continue the franchise and forgot he never reminded us until the last min and he never said anything regarding buying until the last min i think he is banking on us not being able to get legal advice. I do not want to give up my shop i have 4 kids and its all i have, i can stand in the middle of the road and say does anyone want to buy my shop for 30,000 and i would have people jumping to it. why should i just give it away. please help me. i dont know how t orespond and what leg i have to stand on. please help urgent need to respond to him tomorrow and people around me are saying he has to get his attorney to get a court order before he can come and take your shop he cant just come in and take over. what is the legal way ? He has never helped us or any of his franchise companies.


Asked on 8/02/11, 9:30 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I advise the following. Don't give the franchisor permission to do anything without seeking the advice of a good franchise attorney. Don't be bullied by his high-handed tactics; he has to follow the law, go to court, etc. It's not possible to even begin to advise you of your best strategy without reviewing the terms and conditions of your franchise agreement. Beside the franchise agreement, there is also the FDD - Franchise Disclosure Document - to consider. If things were not properly disclosed when you bought the franchise, this may give you additional remedies. Again, and ASAP - consult with a good franchise attorney to review your contract and for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 8/03/11, 6:35 am


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