Final figure, but it's not...........

Raksha

Over a year ago I decided, with the agreement of the Franchise company, to put my franchise 'on hold' I asked them for a final figure of what I owed, and paid it. No further financial transactions took place after that. They then contacted me to say I owed more, which I contested and was unable to pay at the time (the very reason I asked for a final figure in the first place, so I could organise my other debts). I've had no further contact from them during this period.

As I hold some of their stock, and it's taking up room in my house so my OH wants rid of it, I contacted them again to arrange for its collection, and they still say I owe them £300 + (infact they are not trying to say it's £800, but it looks like they aren't taking into account the £400 + I paid in May last year). If I arrange for the shipping of their stock, they would take the cost of the shipping (if less than £100) off the amount they say I owe.

Surely asking for a final figure should mean just that?

cally6008

did you get the final figure in writing and stated final settlement figure ?

paulwf

Check your franchise agreement, early termination of the contract should be covered in it...at 50+ pages long the agreement should cover this scenario.

Perhaps the solicitor that checked your contract as part of the checks before signing it could give you some free advice?

Raksha

There was no signed contract. I didn't sign a contract because the paragraph covering areas suggested that my franchise area would be limited to 2 postcode areas (i.e. AB1 and AB2)

Yes, I got a final settlement figure in writing - in an email which I appear to have deleted, but which is referred to in later emails, which I have kept.

paulwf

All I can suggest is ask for a copy of the original email and see what their normal contract says whether you signed it or not. You may need to take legal advice, see if you can get a free initial consultation...my concern is that a commercial law solicitor will charge close to the £300 just for an hour of work

Sorry for the slight thread hijack but this is the second time this month that someone has had franchise trouble because they haven't had a contract. Franchises have VERY comprehensive contracts...if they won't give you a contract walk away, don't get locked into ongoing charges and exit charges. A franchise solicitor will charge a few hundred pounds to check it over before signing but there's no way I'd sign without that.

chickmug

paulwf

All good points and I would add in many years of being involved in business sales, and being asked to resell franchises, I felt the vast majority were a huge risk.

So I declined to get involved with any unless sometimes one the of biggies. Even then they have the franchisees sewn up very tightly. True to say I do NOT like this concept much.