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Franchise, Breach of Contract, Damages
DireStraits_2
Posts: 33 Forumite
In Nov 08 I signed up for a cleaning franchise with a looong and complex contract.
In June 09 I notified them I wouldnt be continuing with the franchise, having spotted we were going bust and the death of family member led to huge changes in our circumstances.
In short;
the support, training and advice was almost non existent.
They didnt contest the business plan i put forward.
There claims of success etc, were grossly exagerrated
We ran out of money!
They claim we didnt terminate in the prescribed manner;
i) giving them my 0800 number (which I tried)
ii) giving them all my client details, (which I didnt have due to pc failure)
They have subsequently tried to claim damages for "failure to operate the franchise" on a monthly basis since then, till now (about £5K)
The have invoiced us (myself and my partner) personally, despite me being the only signature on the 'contract'.
Can they invoice me without having proven breach?
e.g. going to court
Can they claim damages they "see fit"?
e.g. proving above and then proving such losses?
(they are claiming way in excess of the level we actually achieved)
They have now set a debt collector a task of collecting this money, can the legally do this without having proven we actually owe this money?
In June 09 I notified them I wouldnt be continuing with the franchise, having spotted we were going bust and the death of family member led to huge changes in our circumstances.
In short;
the support, training and advice was almost non existent.
They didnt contest the business plan i put forward.
There claims of success etc, were grossly exagerrated
We ran out of money!
They claim we didnt terminate in the prescribed manner;
i) giving them my 0800 number (which I tried)
ii) giving them all my client details, (which I didnt have due to pc failure)
They have subsequently tried to claim damages for "failure to operate the franchise" on a monthly basis since then, till now (about £5K)
The have invoiced us (myself and my partner) personally, despite me being the only signature on the 'contract'.
Can they invoice me without having proven breach?
e.g. going to court
Can they claim damages they "see fit"?
e.g. proving above and then proving such losses?
(they are claiming way in excess of the level we actually achieved)
They have now set a debt collector a task of collecting this money, can the legally do this without having proven we actually owe this money?
0
Comments
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in what way did you actually tell them that you would not be continuing ??Ex forum ambassador
Long term forum member0 -
i notified them by phone and email.
They acknowledged this in a letter and return email.
I sent them and their solicitor a long email explaining the situation, although nobody ever responded.
I did get delivery receipts, though I am not sure I still have them0 -
Your franchise agreement will detail how to go about terminating it, together with any requirements you need to fulfill to quit (and also including their rights regarding completing the termination).
You probably need to involve your solicitor over this pretty quickly, especially if they feel justified in charging you £5K a month, and have instructed their solicitor!!0 -
Quentin,
its 5K for the year and I cannot afford a solicitor.
Although I now run my own cleaning business, I havent had a wage for 2 years....and even now, I only get 16hrs pay @ NMW
Paying for a solicitor is a non starter.
I have read the termination, and its states (as listed above) that I have to give them my 0800 number and divert my phone lines (although it was never made clear who would pay for these - e.g. BT line with a minimum 12 month contract)
Give them a list of clients, which by virtue of their software, crashing I didnt have full details of the er....NINE clients!
Doesnt the fact that only one signature is on the agreement, though they are claiming against two named individuals?0 -
On another front, they have a restrictive covenant preventing me from working as a cleaner in "the franchise" area for 12 months - I didnt this kind of thing was enforceable? (human rights et al)0
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seek legal advice...often the first consultation is free...If they have involved a solicitor...you probably will have to as well...I'm now a retired teacher... hooray ...:j
Those who can do, those who can't, come to me for lessons:cool:0 -
These problems look to be arising now because you didn't get the "looong and complex contract" checked by a solicitor before signing it.
You do need some proper advice, so if a solicitor is out of the question, try the CAB.0 -
I suspect that there are two issues being confused here - the method of termination and what you are required to do on termination.
It appears that the agreement is terminated and that they are now claiming damages for not following the exit management requirements. They will need to demonstrate that the loss they suffered flowed from your breach (i.e. not providing details, 0800 number, etc).
I think you need to take some advice.0 -
Oh, and make sure the advice you get is from a solicitor who actually has experience of acting for franchisees.
As for the restraint of trade clause, it is impossible to tell whether it is effective without knowing all of the details of the case.
Have to say though - majority are not enforceable / enforced.0 -
Checking out the contract wouldnt have made any difference??
I read it and understood what I was undertaking, broadly speaking.
I understood the termination elements.
What I dont understand is that they are pursuing this anyway, and I dont appear to be able to contest nor refute it.
They only contact from their solicitor was them sending me a copy of the agreement. I replied and got nothing back.
They have now passed the "debt" to a debt collection service, without even proving they have a contract - surely this isnt legal?0
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