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I had a franchisee of a leading laminates and plywood brand. Company proposed very appealing and lucrative business scheme with high profits, which motivated me to go ahead with this. Company had sent the agreement on mail, and company told me that agreement will be done subsequently done; meanwhile we can proceed with the construction of franchisee store. Based on this I purchased appropriate shop as per their requirement and initiated furniture work, etc. Company didn’t signed the agreement even till the opening of the store (JULY 2015) and finally it was signed in September. The agreement which was signed in September was completely biased and different from what they had sent me on mail. I had no option but to move ahead since I had invested so much till then. Company failed to provide direct sales support, and proper sales team, and assure turnover as they promised in the agreement from the first day. Also the initial setup cost was 46 % higher than what they had proposed.

Franchise agreement is the only governing document for your own protection. If a franchisee doesn’t have protections written into the agreement, the franchisee won’t be protected if the deal turns sour. Courts have traditionally ruled in the favor of the franchisor because they are upholding a contract, even if it seems unfair.


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