Kevin Donahue
Junior Member
What is the name of your state? Florida
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I have a couple of questions: 1) Can a franchisor take a franchisee off of national accounts because their behind on franchise fees? National accounts accounted for over 1/3 of my business and I paid for those leeds. It's in my franchise agreement, but isn't there a franchise law about it being illegal for a franchisor to make it impossible for the franchisee to make a living to pay their bills? This just seams like debters prison, you go to jail until you pay, but you can't pay while your in jail. That's what they did to me, they took away $1000's of dollars out of my pocket then breached me because I couldn't pay!!
2) At the last minute I had a buyer for the business who told me that he was approved to buy the franchise. The franchisor then told me that he was not approved and his contract wouldn't be excepted. The termination went through and I lost my business. Under 2 weks later the person who was declined to buy my franchise was listed as the new owner of the franchise by the same name in the same city with the same phone number! The franchisor made out real well, since by allowing the sale they would have received the money I owed plus 8K in the transfer fee. But by doing what they did they made 37K for the new licence as well as selling my equipment plus many extras. Do I have any rights? Does the non-compete that I signed have any power (I had a simular business in the same city for many years before I went to a franchise).
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I have a couple of questions: 1) Can a franchisor take a franchisee off of national accounts because their behind on franchise fees? National accounts accounted for over 1/3 of my business and I paid for those leeds. It's in my franchise agreement, but isn't there a franchise law about it being illegal for a franchisor to make it impossible for the franchisee to make a living to pay their bills? This just seams like debters prison, you go to jail until you pay, but you can't pay while your in jail. That's what they did to me, they took away $1000's of dollars out of my pocket then breached me because I couldn't pay!!
2) At the last minute I had a buyer for the business who told me that he was approved to buy the franchise. The franchisor then told me that he was not approved and his contract wouldn't be excepted. The termination went through and I lost my business. Under 2 weks later the person who was declined to buy my franchise was listed as the new owner of the franchise by the same name in the same city with the same phone number! The franchisor made out real well, since by allowing the sale they would have received the money I owed plus 8K in the transfer fee. But by doing what they did they made 37K for the new licence as well as selling my equipment plus many extras. Do I have any rights? Does the non-compete that I signed have any power (I had a simular business in the same city for many years before I went to a franchise).