Franchise Law? Contracts and Agreements?

[Kung Fu Steve]

Wondering if anyone knows much about Franchise laws, contracts, and agreements.

Having some issues with my current Franchisor, wondering what my options are.

From my understanding a contract in the U.S. isn't valid until all parties get a signed copy. Well we signed... but never received a final copy...

We are supposed to be running business according to the Operations Manual as per the Franchise Agreement. Well, there never was an operations manual, and there isn't now.

I'm a little leary to discuss this on the public forum, but I'd like to share some ideas if anyone has the time!

 

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[jganz]

hey steve.. I am not a lawyer.. nor do i pretend to be one.. although i did stay at a Holiday Inn express.. i am however part of a franchise..

You obviously need a professional answer to your question.. but in the mean time.. I would be very careful as to your correspondense or lack of compliance with your franchise.... they usually have all sorts of things written in there with outs to kick you out of the franchise.. (not sure why they would want to unless they just want to pocket your franchise fee)

I would personally be sure to appear to comply.. if you are sent any documentation or emails.. i would be sure to Respond to them.. something of the effect.. thank you for informing me of blah blah.. please send me the operations manual that pertains to this via email or hard copy so that i can keep in compliance with my franchise agreement.. regards.. etc...

keep hard copys of all of your correspondence

 

[Allthingznew]

Simply stated, if you have an offer and acceptance, you have a contract, and you said you both signed. Doesn't matter if you have a copy of the contract. You may want to get legal help, especially if they're not willing to give you your copy.

 

[Kung Fu Steve]

Well it might be worth getting kicked out of the Franchise at this point. This is definitly not a McDonalds, a well systemized organization. It's kind of a hodge podge. The original plan was to use their name to build the business for the 5 year agreement and then take down the sign on the front of the building and put up a new one. We have only paid a 1/4 of the Franchise fee, it might be worth the loss to get rid of the headaches they are giving us.

Obviously I need some legal help at this point, we'll see if it even gets that far. Just curious as to what kind of opinions you guys had about it.

I don't think it would be too difficult to just swap the signs on the front and call it good

 

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[AroundTheWorld]

As everyone else has said - consult an attorney.

I think that a good attorney could very easily get you out of it. A contract goes BOTH WAYS. Each party agrees to deliver something. In this case, it sounds to me as if they have broken the contract.

They promised to deliver you an operations manual - - - and they did not deliver it to you.

 

[Kung Fu Steve]

Are agreements basically null and void, especially bigger agreements like these over something so trivial?

(well in my eyes, an operations manual would be a joke to me, I don't like to brag because I am NOT a cocky person but I know more business and martial arts then these guys ever will. I know that sounds like the young punk kid in me but I have dedicated the last 8 years of my life learning business from people like you guys. My biggest mentor bought and sold 2 cable companies for millions by the time he was 19. He also runs a martial arts school that is one of the biggest in the country! Anyways rant over.)

 

[AroundTheWorld]

I would personally argue that a franchisor failing to provide an operations manual is a MAJOR problem.

While you may feel like you don't need it - - - think about what franchises are intended to be....

Primarily:

Name
Branding
BUSINESS SYSTEM AND OPERATIONS PROCEDURES!!!

If they have failed to provide you with any of the above - it is a major violation ( in my layman opinion)

 

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[Kung Fu Steve]

Well it's looking like it was a mistake to sign up with them. I was talking to yankee and came to the conclusion I'm a little overqualified for these guys. I have mentors and associates that are far beyond them and a big franchise fee and a hugh percentage of my gross isn't worth the headaches that I'm getting almost every day from them. The funny thing is I am following the systems almost to a T!

You are no laymen by the way! :smxB: I appreciate the advice.

That operations manual... it's really tough to work without it... think I need my money back... :jiggy: