Legal Question in Business Law in New Jersey
Franchise tries to take away our franchisee business
My wife owns a Kuman Math and Reading Center for 12 years, considered a Grandpa franchise, franchised from Kumon North America Inc. Kumon started as a Math center, then expanded into Reading about 6 years ago. Kumon supplied math and reading materials to the center owner and charged percentage on student's monthly fee.
My wife tought math herself and hired an assistant to teach reading. Kumon try to to take away her center by imposing more regulations. Kumon stated that she has to teach Reading herself and force her to take reading test and failed her. Kumon wants to take her center away in 3 months. How do we fight greedy franchise and keep our franchise business ?
1 Answer from Attorneys
Re: Franchise tries to take away our franchisee business
First check the agreements made as the franchise expanded. Was this requirement agreed to in writing, or just a new requirement? You have rights under the NJ Franchise Law and, possibly, based upon a recent case, the Consumer Fraud Statute. Check with an attorney proficient in franchise matters (local bar association or state bar association can make recommendations).
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