Legal Question in Business Law in Michigan
Can quantum meruit extend to franchise owners who bring clients to the francisor
2 Answers from Attorneys
As a Franchise Attorney I can only say the following. Quantum Meruit, Latin, for "as much as is deserved," is a legal doctrine that infers a promise to pay a reasonable amount for labor and materials furnished, even in the absence of a specific legally enforceable agreement between the parties. It is typically used when someone has provided services in the absence of an enforceable contract and the other side would be "unjustly enriched." Like a roofer who repairs a roof but doesn't have a contract, etc. I've never heard of a case where the doctrine was used for the purpose you list. But that doesn't mean you can't try to establish new precedent. Finally, what do you mean by "bring clients to the franchisor?" Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
As a Franchise Attorney I also wanted to add something else. The reason why "bring clients to the franchisor" is so important is this. One of the elements required to establish a claim for Quantum Meruit is that the defendant (franchisor) was aware that the plaintiff (franchise owner), in performing the services, expected to be paid by the franchisor. Did your franchisor accept the clients knowing you expected to be paid? I'd say probably not, but you never know. Consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
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