Franchisor sold market area to another party after I secured market area with a deposit while investigating franchise

[briegel1]

Michigan
Four years ago, I gave franchisor a $3,000 deposit to secure a market area in Michigan while exploring the franchise. I have been thinking about doing the franchise again, but saw that the franchisor has since sold the market area to someone else. The deposit agreement states that in the event myself and the franchisor cannot agree on a suitable location within 90 days of signing the deposit receipt, they reserve the right to refund my deposit. The issue is, the franchisor never contacted me to tell me they were selling my secured market area to someone else and also never refunded my deposit.

Do I have any legal recourse against them for selling my secured market area to someone else? I am confident that I can get my deposit back so that is not an issue. Thanks!

 

[quincy]

After 4 years of no action on your part? I doubt you have any legal action to pursue. You secured the market area for 90 days.

In fact, if you did not try to get your deposit back after the 90 days, I would be surprised if you could get it back now after 4 years.

But you will need to have the deposit agreement personally reviewed by a legal professional in your area to determine where you stand legally.

 

[adjusterjack]

The issue is, the franchisor never contacted me to tell me they were selling my secured market area to someone else and also never refunded my deposit.

Well, no, I think there is only one issue. The deposit. After the 90 days were up I doubt that the franchisor had any obligation to notify you that the market area was going to be sold to someone else.

I am confident that I can get my deposit back

Then go get it back.