Legal Question in Business Law in South Carolina

Franchise Fee Refund

My husband and I recently invested in a franchise with 3 other people. My husband signed paperwork with the franchise saying that the money would not be refunded if we decided not to build a Bruster's. After a lot of decisions and harrassment we have decided not to be partners with the other 3 people. They expect my hsband to work 60 plus hours a week and live away from his family for 6 months, and they are just now telling us this. We wrote both the checks for the franchise fee to one of the partners, not Brusters. They are threatening not to give us our $8000.00 back, and letting someone else buy my husbands share wihtout a refund to us. We have numerous emails stating that they will ''gladly refund your money and part ways.'' The franchise has not been built, nor the land has not even been bought for it to be built on. What should we do? Are these emails legal documents? If they keep our money are we entitled to 25% of the profit from the business (that was the agreement, because the franchise fee is $32,000.00)? What should be our next step?

Asked on 5/27/06, 8:39 am

1 Answer from Attorneys

W. Pete Reid W. Pete Reid, Attorney at Law, LLC

Re: Franchise Fee Refund

Your next step should be to consult with a lawyer. Your question is complex, as there are a host of factual determinations to be made regarding your relationship with your potential partners and the franchisor. Additionally, the documentation signed with the franchisor needs to be carefully reviewed.

I would be happy to meet with you or consult with with you via telephone to discuss your situation in greater detail. I will be in Spartanburg on June 5th and 6th should you wish to set a time to meet. Please find my contact information below.

With kind regards,

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Answered on 5/30/06, 7:43 pm

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