Legal Question in Business Law in Georgia
My franchise agreement specifies a monthly advertising fee but no advertising is done. How can I force them to use the monies for the intended purpose?
3 Answers from Attorneys
It depends on the terms of your franchise agreement -- does it REQUIRE that they use the marketing budget or is it within their discretion? I strongly recommend that you hire a Georgia business/corporate attorney to review the franchise agreement and advise you of your rights. Please feel free to contact me.
Best of luck.*******The above is for informational purposes only and does not create an attorney-client privilege.******
Since you're in business, I assume you already have a lawyer that you call for all your business needs (that should be the same one that reviewed your agreement before you signed). That lawyer will know the precise terms and can advise you (1) if the agreemenbt has been violated, and (2) what remedies the agreement allows.
Call that lawyer for advice.
Any franchise attorney will say you need to have both the franchise agreement AND disclosures made in the FDD (Franchise Disclosure Document) reviewed. Corporate or general business attorneys are not familiar with how franchise relationships work, or the impact of what was disclosed (or not disclosed) in the FDD when you signed up. Having owned and operated a franchise before, this was also an issue in my franchise. Consult with a good franchise attorney for specific advice. A well-written letter from a recognized attorney may be enough to get the company motivated to play fair.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
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