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

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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?
Please forgive me if my comments seem abrupt or my questions have obvious answers, I have a mental health condition which affects my ability to see things as others might.

Comments

  • cally6008
    cally6008 Posts: 7,629 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    did you get the final figure in writing and stated final settlement figure ?
  • paulwf
    paulwf Posts: 3,269 Forumite
    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
    Raksha Posts: 4,569 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    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.
    Please forgive me if my comments seem abrupt or my questions have obvious answers, I have a mental health condition which affects my ability to see things as others might.
  • paulwf
    paulwf Posts: 3,269 Forumite
    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
    chickmug Posts: 3,279 Forumite
    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.
    A retired senior partner, in own agency, with 40 years experience in property sales & new build. In latter part of career specialising in commercial - mostly business sales.
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