Posted by Elizabeth Gore-Jones
on 21 February 2024
Need more reasons to invest in a franchise lawyer? Here's another compelling case study why it might be one of the best decisions you make!
In another previous matter, a franchisee faced severe financial struggles, unable to reverse losses despite efforts. Negotiations to exit the franchise agreement also stalled due to significant debts owed to the franchisor, alongside rental and supplier obligations.
Facing bankruptcy and liquidation, the franchisee sought our assistance.
To resolve the concerns, we did the following:
- We assessed each debt’s risk and the possible effects of non-payment.
- We undertook negotiations with each creditor, including the franchisor, focusing on payment plans and debt reduction.
As a result;
- Within 2 weeks, an agreement was reached with the franchisor to forgive a portion of the debt, improving our negotiating position with other creditors.
- The franchisee and its directors avoided bankruptcy and liquidation.
Again, while outcomes may vary, this case highlights the importance of seeking professional assistance in franchise disputes, where self-negotiation can be challenging due to power imbalances, stress, and lack of legal knowledge.
Investing in experienced franchise lawyers can unveil unexplored options and ensure effective representation.
Hence, if you are a franchisee struggling with financial dispute, do not lose hope! We are here to help.
Contact us for legal support!
