When the franchiser changes the rules ...
Buying a franchise means having your own business, but with the support of the franchiser. But if the franchiser takes actions that cause you to lose profitability, your investment could be a loss.
ClassAction.com: Justice for Franchisees
Franchise operations enable a franchisor, the company with the concept that created the franchise, to build a brand through the investments of franchisees. It is designed to be a win-win approach to business — selling a proven concept to entrepreneurs who will profit from their connection to the franchiser.
What happens when the franchiser changes the rules or is unfair to the franchisee? The local franchise owner may be unable to run a profitable business. One franchisee fighting back may not get the attention necessary for change. But when franchisees join in a class action, they will be heard.
- Uniform policies: When franchisers sell franchise operations, they are obligated to have the same policies for every franchisee. They cannot institute requirements for one franchisee that is not the same for others.
- Set up to fail: A franchiser may want a franchisee or group of franchisees to fail for some reason. They may want to make the franchises available to someone else in that market, for example. When they make rules designed to force franchise termination, that is wrong.
- False violations: Franchisees agree to follow a certain set of rules that assure the franchise meets corporate standards and protects the brand. Trumping up violations can leave the franchisee with an impossible task — meeting standards that keep changing.
If you and other franchisees suspect franchise fraud, talk to a lawyer about a franchising agreement class action lawsuit. At ClassAction.com, we bring together people who have been financially harmed with attorneys experienced with class action lawsuits.
Contact ClassAction.com if you suspect franchise fraud. If you are a franchise operator or a whistleblower with the franchiser, you can learn if others have similar experiences.
