Legal Question in Business Law in Florida

franchisee/franchisor contract

Franchisor is a privately held corporation in Texas, our franchise is in Florida. We have given franchisor advance notice as we need to sell, or close, our franchise because we can no longer afford to operate it.....losing money, bankruptcy being an option.. We were told that if we follow all closing procedures set forth, the franchisor, because of our reason for having to close, would not hold us liable for contracted future royalties. Now we find out we will be charged a $10,000 closure fee and, if we don't agree to that, the franchisor will pursue us for maximum future monthly royalties. Nothing in the ops manual references closure fee (apparently just adopted 2/1/08) nor has any other franchise been notified of this change/amendment to policy. The fee would be less expensive than future royalties, but this closure fee is something they just threw into the mix without giving notice to any one of the 10,000 franchisees world wide. To our knowledge, no other franchisee who has had to close for similar reasons has ever been pursued for maximum future royalties. Sounds like the closure fee is an attempt to get quick money from the soon to be defunct franchisee. Does this sound legal to you?


Asked on 4/07/08, 4:59 pm

1 Answer from Attorneys
David Slater David P. Slater, Esq.

Re: franchisee/franchisor contract

no

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Answered on 4/08/08, 4:53 am


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