Legal Question in Business Law in California

California regulates franchisors and franchising through its newly-renamed Department of Business Oversight, and if you spend some time on the Internet and telephone, you can probably find someone who can give you a better answer than I can, especially since you'd be allowed to tell them the name of your franchisor.

However, I can say offhand that I suspect your chances of getting money back via legal action, such as going to court or (if you've agreed to it) an arbitration proceeding, are not that great, especially if you received some value (even if not training) for the fee paid. You might have a better chance approaching the franchisor, explaining the situation, and asking for a full or partial refund in exchange for giving up your territory rights, or the like.

Finally, I'd suggest making a fairly thorough search of the Internet ro see whether you can find anyone else that has had a comparable experience with this franchisor.

The terms of the franchise contract determine you 'right' to sell, so read it or consult with counsel. If the contract says 'non refundable', you have your answer, since the problem was of your making, not the company. You can try to negotiate anything, through your attorney, so hire one.

If serious about hiring counsel to help in this, feel free to contact me. I�ll be happy to help fight and get the best outcome possible, using whatever defenses and sympathies there may be.