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Expectation loss by franchisor


yojumitu
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A franchisor has taken me to County Court Claiming Expectation losses. I.e - losses they have incurred due to breach of contract and under performance by a franchisee.

 

They have claimed an extravagant amount in damages, asking to pay up amounts for balance of the agreement term.

the franchisee closed the business after 6 months in operation and the term signed was for 10 years.

 

Please help or advise how the franchisee can defend his case.

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I don't really understand what your interest in the contract is. The Franchisor is the person granting the franchise. The franchisee is the person to whom it was granted. From your posting you don't appear to be either under the doctrine of privity of contract only parties to a contract can sue/be sued under the contract.

 

That said commercial law, particularly franchising is a complex area well outside of the expertise of most of the posters here, including me. If there is a substantial claim against you then you need to take advice from a commercial lawyer specialising in franchising. It will be expensive. Legal aid is not, as far as I aware, available

If I've helped feel free to add to my reputation.

 

I am not a Practising Lawyer. My comments are my opinion only. You should not rely upon those comments and should always take your own professional advice from a practising Solicitor or Barrister

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