Help Mediating with Franchisor

LoveBiz

Please help me!!!!
I am about half way through a 5 year franchise agreement. I have definitely been misled along the way but do not have the funds or strength to take action against them. my plan was to keep my head down and do my time...
My current issue is serious cash flow problems. I am going to be unable to generate business for 2-3 months, resulting in a cashflow problem later in the year. I have written to my franchisor to let them know of my situation (mid July) and they responded to say they would discuss and come back to me. I had asked for a payment break/ reduction for a few months. I have sent a follow up email asking when they are likely to come back to me but haven't heard anything further.

I have had to do the same with the bank re loan payments- they were extremely supportive and accommodating. I just don't know where to take this now with the franchisor. If they wont communicate with me how can I proceed?????

00ec25

read the terms of your franchise agreement as to the implications of non payment.

LoveBiz

Thanks- I am clear on the implications- they will cut me off and sue me fairly quickly! I wanted to avoid this obviously and continue to run the business until the end. I was looking for a way of coming to a mutually acceptable solution with a short term payment plan to see me through. Do I just accept this won’t be possible and wait for solicitor letters?