Legal Question in Business Law in Georgia

Franchise

I am currently in my 3rd year of my 10 year franchise agreement. I have never broken even and sales trend have never been positive for the last 4 years company wide. Franchisor unofficially has admitted they have tried thier best and basically you are on your own.

Am I still obligated to pay them royalties and can they still hold me on all of thier UFOC agreements?


Asked on 2/22/08, 10:48 am

3 Answers from Attorneys

SHERRY RAGOLE RAGOLE & ASSOCIATES, LLC

Re: Franchise

You will need to consult with an attorney who can examine your evidence and discuss the matter. Franchise agreements were usually drawn by attorneys; therefore, they are difficult to break absent a mistake, breach or other unusual circumstance. However, it can and has been done, so further exploration will allow you to determine whether you may want to pursue action.

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Answered on 2/22/08, 12:25 pm
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Franchise

Have a local business/franchise attorney review the entire agreement and advise you on your rights, obligations, etc. In many situations, if one party has breached the terms of an agreement, the other party is excused from further obligation.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 2/22/08, 2:23 pm
Jeff Kent Kent & Merritt, P.A.

Re: Franchise

They very well may be able to hold you to the agreement. However, there may be some part of the agrement that they did not follow, which might get you out of the contract, or they might be willing to accept a negotiated out. You will probably want to speak with an attorney to review the UFOC and the agreement.

Please feel free to contact me if you have further questions.

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Answered on 2/22/08, 10:56 am


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