Background
The franchisee bought an already existing franchised business. Unfortunately, a number of things occurred over the years that greatly impacted the business. These included competitors opening in very close vicinity and all of the commercial premises around the business closing down as they were being demolished to make way for residential towers.
Our client's business was going backwards very quickly and our client had attempted to discuss an outcome with the franchisor, but to no avail.
What We Did
We prepared a notice of dispute outlining all infringements of law and breaches of the Franchise Agreement. These included claims of misleading and deceptive behaviour, unconscionable behaviour, breach of obligation to act in good faith and so on.
We undertook negotiations with the franchisor and the franchisor's solicitors. The franchisor had offered to buy back the store at an amount close to $10,000.
Outcome
Negotiations resulted in the franchisor buying back the store for over $110,000.
