Breach of Contract

What is a Breach of Contract?

A franchisor breaches its contract when it fails to perform the obligations that it promised to perform when you signed up. A breach may include a failure to provide training, failure to supply support, a change in the business format, or burdensome requirements that were not contemplated at the time you entered into the contract.

Do the Franchisor’s Obligations Have to be in Writing?

A contract does not always have to be in writing in order for it to be enforceable or for a breach to occur. If the franchisor has made promises to you that you have relied upon, or if you and the franchisor have conducted business in a certain way over a period of years, there may be a basis to find a breach.

What are my Rights?

When franchisors breach contracts, there can be any number of consequences. You may be able to get out of the franchise agreement. You may be able to get an award of damages. Or you may be able to get the franchisor to change its ways. Creative, aggressive thinking can lead to rewarding solutions. 

What is Michael Garner’s Experience?

We got one client an award of several hundred thousands of dollars because the franchisor’s method and equipment didn’t work. Another group of franchisees explained to us how the franchisor had let them down in training and support, and we helped them leave the franchise system and operate as independents. Where several franchisees came to us with similar problems, we put on a test case against the franchisor showing how it was liable; the franchisor ended up paying the other franchisees because of what we’d shown in the test case.  

Please check our Case Studies page for examples of how we have helped franchisees enforce their contracts, and Contact Us to discuss your situation.