Why Invest In a Franchise Lawyer: Case Study 1

Considering investing in a franchise lawyer? Here's a real-life case study that highlights why it might be one of the best decisions for your franchise journey!

We were previously involved in a case where a franchisee thought they were released from their agreement but were actually being pursued by the franchisor for fees and costs.

They were understandably upset when they reached out to us.

They have already been to another lawyer who, not being a franchise lawyer, had not progressed their case, to the extent that a debt collector had already been appointed and the franchisee was ready to just pay and settle up.

Upon review, we noted the following critical points:

• The debt collector pursued the wrong party, targeting the franchisee's company instead of the individual franchisee.

• The franchisor made false representations to induce the franchisee to enter into the agreement.

• The franchisor acted deceitfully, failing to disclose the full financial obligations upon termination.

To address the issues, we took the following steps:

• We advised the debt collector of the incorrect party and prepared to defend and counter-claim.

• We corresponded with the franchisor's lawyers, citing breaches of the Competition and Consumer Act and contract terms.

As a result:

• The debt collector withdrew from the pursuit within 24 hours.

• The franchisor offered to release the franchisee from any claims within 5 days if they released the franchisor in return.

• The franchisee was released from the agreement without payment.

While outcomes may vary, this case underscores the importance of engaging a franchising law?yer, with a deep understanding of Australian franchising law, to arrive at quick and convenient solutions.

Hence, to all franchisees facing similar issues, do not hesitate to contact us for expert legal assistance.