Legal Question in Business Law in New Jersey

Franchise denied without reason

My wife an I recently applied for Quizno's franchise. We were both pre-qualified, and met with rep. to sign franchise agreement, and give them initial franchise fee. One of the page in the agreement stated: if any of Quizno's rep made any claim of gross sale, that is not listed in UFOC, write them down and sign the page. One of the rep. had disclosed to me (without me asking him) average gross sale for northeast, which is NOT included in UFOC. So, we wrote that down in the agreement. In adition we also wrote that we are not relying on that information to purchase the franchise. As soon as we wrote that down one of the rep. called his boss and we were told that we could not finish the agreement that day and they will get back to us with an answer.(We actually finished signing all the pages of agreement). After three weeks of calling them, rep finally told us that decision was made not to give you the franchise. He could not give us the reason.

Just because one of the franchie's broker disclosed the information that we did not ask for, we can't have the franchise?


Asked on 10/19/03, 9:23 pm

1 Answer from Attorneys

Walter LeVine Walter D. LeVine, Esq.

Re: Franchise denied without reason

You might consider a claim under NJ Franchise Act. Sounds like you were eliminated due to a possible misrepresentation as to the potential sales. Seek out an attorney who specializes in this area.

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Answered on 10/20/03, 10:06 am


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