Legal Question in Business Law in Illinois

franchise contract

I bought a janitorial franchise in the year 2000. I do the work they collect the money pay me minus 15% for administration fees. I 'am currently at about 4000 a month in billing. In the last three months I have received a total of 1,700.00 from the franchisor. The contracts I do are paying the franchisor but I'am not getting paid as per the contract. I can sell the contracts for about 10,000.00 but that would leave me with no monthly income and the franchisor still owing me about another 10,000.00 in past due billing. He is getting paid but if another contract does not pay he uses my contracts to pay others. I suspect him to be in debt with others like me . My question is how can I get my money all of it.


Asked on 3/02/07, 12:18 pm

2 Answers from Attorneys
Noelle Ansley Noelle Ansley

Re: franchise contract

Without reviewing your franchise agreement, it's hard to know what remedies you have available to you. You should review the franchise documents to see if they provide a remedy for your situation. Ask the franchisor for an accounting so that you can see exactly what he's getting for your services and exactly what he's paying out to you. If this doesn't prompt him to pay you what he owes you (or if there's a large discrepancy in the amounts), you may have a cause of action against him for breach of contract or just to collect the sums he owes you for your services.

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Answered on 3/02/07, 12:53 pm

Re: franchise contract

Without reviewing your franchise agreement, it's hard to know what remedies you have available to you. There may be a remedies clause in the agreement requring arbtration or setting forth requirements before you can fle suit. You should review the franchise documents. Also, regardless of that, you are entitled to an Accounting to determine payment records, etc. so ask the franchisor for one.

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Answered on 3/02/07, 1:40 pm


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