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Need feed back how to get out of franchise contract

J

JAYP

New member
My friend wants out of franchise contract…resons for doing are
1- no any kind of support from franchise.
2- paying for franchise fees for no services.
3- lots of changes coming from them seems like every day with out letting other franchisee input.
4- look out for their company stores first to have any new marketing done without any other geographics survey done to see if other stores are in metro or hispanics area or diffrent population graphics… they go ahed on whats best for their stores but tell that its company wide and all you pay for this, with out seeing its not working for others.
5- no e-mail return or phone call return…looks like they screen the calls.
6- company run by family not out side hired proffesionals.
7- company stores looks like they are stuck in 80’s they dont fix them, but force franchise to make new changes often and charge them by their friends as preffered contractor or prienter or marketing guru.
Any comments by you guys on my friends behalf I Thank you.
JAYP
 
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One key element is to find THEIR breach of contract. Find out what services they are obligated to provide that and didn’t. I am talking about DOCUMENTABLE, hard to argue with servies or oblgations. the whole “they treat the company stores better” isn’t useful in court unless there is a contractual obligation to treat all the same.

An attorney is always a good and probably best option. Get a contract attorney, better if they have franshise experience. but, contract attorney can review the document/agreement and find the weaknesses to capitalize on.

“He who uses the rules to his best advantage wins”
 
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My son in opening a franchise. What is the one to stay away from
 
The ones that offer franchises 🙂

Independents are the way to go (in my limited and very biased viewpoint)
 
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IMHO run don’t walk from franchises. You are just buying a job and lining someone elses pocket.
 
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can is friend sell the franchise?
I think he may have enough knowledge to make it on his own.
HE will make a lot more being able to deliver, to have the control of running his OWN specials. adjust hours as needed.
But Most of all not feeling you have your hands tied every single day, then once a month mailing a royalty check to them.
If It was me I probably would do something very unethical. I would start making it to where it financially didnt help my franchise to keep me.
look at the contract very closely, call any attourey and see if you can have them harrass them…IE I have several that love our pizza, I would if it where me, Have them send out reminder notices of what they are expected to do. whatching there every move.
tell them also YOU WANT AN IRS AUDIT so you can determine if the figures are right…(now you cant just ask the IRS for one but it will scare the bejueses out of them)…THis does work before anyone jumps on me LOL…I had a shop in San Diego where my cam was out ragous. he claimed he paid 100,000 in management fees (my cam was a percent)
when I told him I wanted to see the 1099 of the girl, it went to 25,000 turned out to be a typo…
my point is dont keep it so easy for them as well.
 
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NicksPizza:
The ones that offer franchises 🙂

Independents are the way to go (in my limited and very biased viewpoint)
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the man speaks the truth, having a franchise might get you a big name, but you lose all creative control and a lot of marketing control. being independant is way better. I’ve worked for one of the big three, and now I work for an independant and it is way better. Don’t get me wrong, we could all learn a few things from the big three, as they are very successful and have a lot of good things and proceedures in place, but working for one of them is not very satisfying.
 
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JayP,

This is an opinion and should only be viewed as such:

It seems your “friend” has three options if he wants to get out of this franchise
  1. I believe it was RedBarn who said, “sell it”. If there’s one easy way to get out of the entire thing, it’s to find a buyer (preferrably the parent company) so you can just wash your hands of the entire thing.
  2. One option Nick offered will have to be used regardless… that’s to consult an attorney. Start looking for one now because no matter which way you go in the future with this entity you are going to need one to assist you. Whether you decide to push forward with the potential lawsuit based on lack of support, or drawing up papers to sell.
  3. Another thing to look into is to see if they’re properly recognized as a licensed franchisor. I can tell you their initial investment to trademark their name, go through audits, obtain licensing in the lower 48 states, etc. could easily top $20,000 just so they can be legally registered as a franchisor in the United States. If they haven’t gone through this process they’re operating under false pretenses and you could have an out option there.
With the opinion I’ve just provided I would highly advise your friend to consult an attorney. I’m sure a good attorney would have more information to help you with your potential case than any of us on this board. Good luck.

-J_r0kk
 
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Anonymous:
My son in opening a franchise. What is the one to stay away from
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Stay away from franchise…Lots of control and problems by them. Like Nick mention going indy is the way to go… your son will make more money and have fun with his new ideas.
Stayyyyyyyyyyyyy awwwwwwwwwwwwy
Thanks
Jayp
 
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I am a Pizza Factory franchisee and am very happy with the franchise.
 
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JAYP:
Stay away from franchise…Lots of control and problems by them. Like Nick mention going indy is the way to go… your son will make more money and have fun with his new ideas.
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I dunno. I’m kicking myself for not figuring out what a cash cow Subway was 20 years ago before there was one on every corner.
 
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snowman:
I dunno. I’m kicking myself for not figuring out what a cash cow Subway was 20 years ago before there was one on every corner.
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Yeah, but they don’t sell as much pizza as they used to 🙂
 
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