Damages For Breach Of Franchise Agreement

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  • 16 Settembre 2021

This case is an illustration of a type of litigation common in the world of franchising. A franchisee who fails to make a franchise profitable is often tempted to incriminate the franchisee and use litigation to repay his lost investment. In this regard, the Tribunal reminds franchisees that they are required to obtain the information they need to make an informed decision on the conclusion of a franchise agreement. In the absence of clear evidence of fraud, it will be very difficult for a franchisee who has not asked questions and sought professional advice before signing the franchise agreement. As a general rule, the terms of the franchise agreement give the franchisee the right to terminate the contract if the franchisee stops a breach or becomes insolvent. In most cases, the franchisee should not resign immediately, but should allow the franchisee to repair the infringement and only terminate if the franchisee does not correct the position within a specified period of time. . .