Misrepresentation & Mis-Selling of Franchises

Solicitors in Essex & London

One of the most common legal issues that arise for franchisees is that of misrepresentation, otherwise known as mis-selling.

Around 85% of complaints we receive relate to franchisees who are dissatisfied with their franchise because they believe that it was mis-sold to them.

Often franchisees are given glossy brochures or sales packs for their chosen franchise which typically set out details of the opportunity, investment levels, profit and loss, cash flow forecasts, details of support and what will be included in their fees.

However, what most franchisees are unaware of when they are reading this information is that the franchise agreement is almost always drafted to expressly exclude the franchisee from relying on the information the franchisor has given them in the brochures and sales packs. This is to ensure it does not form part of the commercial deal between the parties.

The majority of the information contained in the literature given to the franchisee pre-signature of the franchise agreement is for information only. The very clever wording in sales literature can cause franchisees, who are seeking to rely on things they were told before signing up to the agreement, difficulties.

Misrepresentation in the context of franchising is a statement of fact (oral or written) that was made prior to the franchise agreement being signed which the franchisee relied upon and which induced (persuaded or convinced) the franchisee to opt for that franchise and sign up to the franchise agreement.

In circumstances where these statements have been made carelessly and as a result are not accurate or where they have been made falsely in the knowledge they are not true, the franchisee may have a remedy against the franchisor.

Our specialist franchise law solicitors in Essex and London have reviewed, advised upon and dealt with hundreds of cases of alleged misrepresentation. If you believe you have been mis-sold a franchise or have any concerns over what you were or are being told before signing up to a franchise please contact us for details of our fixed fee initial advice services.

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If you feel that you have been mis-sold a franchise or the package offered to you was mispresented, please feel free to contact any of our franchise law solicitors directly to discuss your issues in more detail. We offer consultations in any of our five offices across Essex and London, or, if more convenient, we are happy to meet you onsite at your own premises.

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