Legal Question in Business Law in Wisconsin

Franchise Recinded Granted Permission

We are a franchisee of an international franchise company supplying internet access...an ISP......

The company has granted some franchisees the permission to purchase their own T1 lines from the Telco....we requested permission to do the same...and via e mail from the president of the company were granted this permission....

full transcripts of these emails is on file with us........

quoting .....if you want to use UUNet that is ok............we went ahead and contacted UUNet and signed a lease on this basis......after several more emails of trying to persuade us not to go with a different supplyer, this after the contract was signed...we got a final email from him claiming he had never written to us and refusing us permission...his final words were ...no UUNET at this time, there is nothing further to discuss.....

Q...are they in breach of contract by lying to us...can we claim cancellation fees from them...does this constitute grounds for a law suit, for damages to our reputation with the Telco.....

Thank you in advance..


Asked on 10/11/99, 5:10 pm

1 Answer from Attorneys

Re: Franchise Recinded Granted Permission

When the franchisor granted you permission to use UUNET, you were able to enter into a lease. When the permission was later canceled, you were damaged. You may sue and the basis for your lawsuit would be promissory estopple. You relied on the statements of the franchisor and incurred a liability as a result directly related to the franchisor''s representations.

If you have additional quations, please visit our website at http:beaulier.com or call for a free consultation (612) 831-5000

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Answered on 10/12/99, 4:05 pm


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