Misrepresentations In Franchise Disputes

It is not a wonder that some franchisors end in court due to misrepresentation.

In some cases, franchise misrepresentations revolve around financial information or profits made by the franchisor.

If you relied on misrepresentation when buying a franchise, you might have a possible legal claim.


Misrepresentation in Franchise Business

If a franchisee relies on wrong information, they can possibly sue the franchisor. The process of seeking justice in franchise cases is not easy. It is recommended to hire an attorney for franchise disputes. Such a lawyer can help you recover losses in a misrepresentation claim.

Generally, a franchisor will claim that a franchise is profitable, whereas this is not true. For a franchisee to claim misrepresentation, they have to show what information they relied on.

The above requires one to file a claim with the help of a lawyer who understands fraud in franchise law.

Common examples of misrepresentation include:

  • Your franchisor lied about the profits obtained:The lie must have influenced your decision to purchase the franchise business. In addition, you must demonstrate that you relied on such information. Such an example would include profits not mentioned on item 19 of the franchise disclosure document in the U.S.

If your franchisor misled you into a franchise business, you might want to seek legal guidance on dealing with your case from an attorney for a franchise dispute.


Fling Your Misrepresentation Claim

While franchisors operate on regulated grounds, not everyone follows the rules. Franchisors give a lot of information to promote the franchise business they are about to sell. This is a way to encourage the franchisee to buy the business.

When a franchisee is about to enter into the franchise business, they ask questions from the franchisor. Most of these questions are related to profits and what training or support to receive from the franchisor.

Such information assists a franchisee in deciding on whether to take up the business. However, such information may be the start of disagreement. Such cases require that one look for a lawyer for franchise litigation in the U.S.

If you have a claim, some of the things you might have to demonstrate include:

  • Your franchisor made a misrepresentation.
  • You relied on the false misrepresentation.
  • As a result, you suffered damages.

Misrepresentation is an enemy to the success of any franchise business. Any franchisor must know that franchisee relies on all information received, which could mean more than just a sales talk.

Franchisors and franchisees may find themselves in legal disputes due to misrepresentation. If you are in such a position, you can consider hiring a lawyer for franchisor litigation in the U.S to handle your case. Such a lawyer will ensure that your legal rights are protected.

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