Legal Question in Business Law in Florida

Ending Franchise Agreement

I made the mistake of converting my business to a franchise and have now been served my notice on the basis of erroneous accusations. That is fine with me as I believe the franchise was grossly misrepresented and have had many probolems from day 1. I believe I have been constructively dismissed as it is not possible for me to correct what I have not done. Additionally, we operate non-exclusive territories pertaining to thier right to sell another license & other owners can do work if invited by thier customer. A neighbouring franchise has repeatedly bid in our area with the knowledge of the franchisor. The franchisor has told them that they can't (setting precedent) but a large bid is coming up and the franchisee will not back down and the franchisor will not enfore our agreement against them. I believe this is a breach of thier fiduciary duty towards me as I have bought and paid for this area. Surely it is considered marketing to be on the bid list of a non-customer. Is this grounds to have the agreement come to an end with a clean break and therefore avoid the non-compete issues? Thank you in adnavnce


Asked on 5/04/09, 1:49 pm

1 Answer from Attorneys
Alan Wagner Wagner, McLaughlin & Whittemore P.A.

Re: Ending Franchise Agreement

This would be governed initially by your contract. Read it carefully to see how it can be terminated under its terms. If the franchise is not exclusive to any territory, then you would have known that going into the arrangement. It would not be cause to complain that the other person is bidding for your work if the agreement clearly states that there is no territorial exculsivity.

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Answered on 5/04/09, 2:33 pm


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