For franchisees
Common problems with a franchise, and how we help.
Whether you are a few months in or many years in, problems with a franchisor can put your income, your savings and your home under strain. Here are the issues franchisees bring to us most often, what they mean and how each of our services can help.
The franchisor is not providing the support promised
Training that never happened, a support line that does not answer, field visits that stopped, or marketing that does not reach your area. Most franchise agreements set out what the franchisor must provide in return for your fees, sometimes in the operations manual rather than the agreement itself.
We compare what was promised with what has been delivered, record the gap, and raise it with the franchisor in a way that is hard to ignore.
The business is not performing as you were told
If the figures you were shown before signing, such as projected turnover, profit or break-even, bear no relation to reality, you may have a complaint about what you were told. Whether you do depends on exactly what was said or written, and when.
Evidence is everything here. We gather the prospectus, projections, emails and notes of meetings, and set them against your actual figures.
Disputes over fees, royalties and the marketing levy
Disagreements about how management service fees are calculated, unexpected new charges, or a marketing fund that seems to benefit everyone but you. The franchise agreement will usually say how fees are worked out and what the marketing fund can be spent on.
Stopping payment without advice can put you in breach, and give the franchisor grounds to terminate. Get advice first.
Problems with your territory
Another franchisee, an online channel or the franchisor itself taking customers in the area you paid for. Whether that is a breach depends on how your territory is defined, and whether it is exclusive.
Warning letters, breach notices and termination
A breach notice from your franchisor usually starts a clock. Read it carefully, note any deadline, and do not ignore it. Your response, and its timing, can decide whether a later termination is valid.
We help you understand what is alleged, what the agreement allows, and how to respond.
Non-renewal, exit and selling your franchise
Your franchisor refuses to renew, blocks a sale, or you simply want out. Most franchise agreements control renewal, transfer and early exit closely, often with fees and conditions attached.
A negotiated exit is often better for both sides than a contested one.
Restrictions after you leave
Most franchise agreements include restrictive covenants: promises not to compete, not to approach customers or not to work in the same trade for a period after the franchise ends. Some are enforceable and some go further than the law allows. The difference matters for your livelihood.
Changes to the system, suppliers or prices
New compulsory suppliers, higher prices for goods you must buy from the franchisor, or changes to the operations manual that cost you money. Franchisors often have the right to change the system, but that right has limits.
The relationship has broken down
Sometimes there is no single issue: calls are not returned, meetings are hostile and trust has gone. An independent person who can put your case calmly, on the facts, can often restart the conversation.
First steps if you have a problem with your franchise
Before you do anything else:
- Find your franchise agreement, operations manual and anything you were given before you signed
- Note any deadline in a letter or notice from your franchisor
- Keep paying and trading unless you have taken advice; stopping can put you in breach
- Put concerns to your franchisor in writing, calmly, and keep copies
- Write down what happened and when, while you remember it
- Do not sign anything new, such as a settlement, variation or release, until you understand it
Questions and answers
Is there a law that protects franchisees in the UK?
There is no specific franchise law in the UK. Your rights come mainly from the franchise agreement itself and general contract law. That is why the exact wording of your agreement matters so much.
Can I get out of my franchise agreement?
It depends on the agreement and the circumstances. Options can include a negotiated exit, a sale or transfer, or, in some cases, ending the agreement because of the franchisor's own breach. Each carries risks, so get advice before acting.
My franchisor has threatened legal action. What should I do?
Do not ignore it, and note any deadline. Contact us straight away. If you need a solicitor, we will tell you and help you find one quickly.
Will my franchisor know I have contacted you?
No. Your enquiry is confidential. Nothing is sent to your franchisor or anyone else unless you agree.
Call or email Martin today, in confidence
Tell us what has happened. Initial discussions are free and in confidence.