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A relative of mine has had a franchise for over forty years. He has not followed the terms of that contract since he purchased the business. He told the franchisor that he would not follow the franchise requirements (purchase a majority of his products from them) during that entire period. NOW the ownership of the franchise company management has sold and changed. This new owner wants to require that he purchase all products from them and change his menu to match the company's new one. Is it possible for them to require him to do so even though in all those years he has told them that he would not and they continued to allow him to do so?? Please give your opinion and how you know the answer to this question, if you will. Thank you for your assistance in this matter.

2007-01-01 14:08:44 · 2 answers · asked by Eds 7 in Business & Finance Other - Business & Finance

jm- The Company did pull the contracts of a number of their stores years ago. They had no right to charge him additional money but they would have been able to "pull his franchise" if they wanted to. He had generated a large amount of their business in our statge at that time and he comtinued to inform them every time that he was not purchasing products from them as to why or what he added to his menu. Their area administrator spent time with him several times every year checking out the business. MY question... If they did not hold to their end of the contract for 40 years then can they now change the way they are going to deal with him?

2007-01-01 14:47:23 · update #1

2 answers

If he is in a franchise he is bound by their rules and regulations. He is lucky that in all those years they didn't fine him large amount or even threaten to revoke his rights to the franchise. If they really want to, they can put you out of business.

2007-01-01 14:16:41 · answer #1 · answered by Mr.Robot 5 · 0 0

check to see if he can take the name out and continue as a private business, but a bad idea. Also he signed for the franchise terms so he should abide by them ethically, or sell the business. what is right is right and wrong is wrong after all.

2007-01-01 22:33:46 · answer #2 · answered by sk1295 3 · 0 0

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