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aggrieved on franchise deal

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1 aggrieved on franchise deal on Wed Jan 12, 2011 5:27 pm

demy2011


Arresto Menor
Dear sir/Mam

I'm thankful because I found your website. I have been searching for someone who could answer my question.

Around May 2010, I have a hard earned savings . I decided to franchise a pizza product worth P78,000 for a franchise fee inclusive of the use of the foodcart and equipments.My franchise term is one year as per contract. They said they normally conduct a survey if u have already chosen a location to find out if it is the right market. The secretary signalled me to get the place.What made me uncomfortable was that they delivered my foodcart around 5:30 pm in contrary to what they promised first hour in the morning. I felt it was a bad omen, and when I asked the franchisor what he think about my location, he just said " Ewan ko, di ko naman nakita eh.". I thought why did you allow me to operate when you did not see my place.
Sadly I operated for only 2 days because of low sales. I later found out that the franchisor did not really surveyed my chosen location and that their proven market are supermarkets..I was feeling mad because he did not gave me an honest opinion about it. I spent around P25,000 just for the renovation of my place.Now they wanted to get the foodcart if I no longer wanted to transfer. Since I no longer have a budget for another downpayment, I returned their foodcart and equipments because according to them, they will help me resell it and give me a full refund. I trusted them but when I am following them up regarding this, they no longer have a reply..From that time I've got depressed and incur insomnia because my savings are gone..They have my money and foodcart which really unable me to conduct a business.Ive lost livelihood and they really don't mind.

My question is can i file a claim/damage to this since I only operated for 2 days for the use of their tradename. I felt I was neglected by the company and was taken advantage of my being novice to business. I somehow realized that some franchising company are after collection only of franchising fee. When you did not succeed, they will say its non refundable


very Sincerely yours,

Demy

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2 Re: aggrieved on franchise deal on Sat Jan 15, 2011 10:17 am

attyLLL


moderator
those are the risks of business. please go back to your franchise agreement and see what is written there.

if you wish to go ahead and take action, the first thing to do is to serve a demand letter. after which you can file a small claims case. rules on sc.judicary.gov.ph.


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3 Re: aggrieved on franchise deal on Sat Jan 15, 2011 6:11 pm

demy2011


Arresto Menor
thank you sir for your reply. Godbless

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4 Re: aggrieved on franchise deal on Mon Jan 17, 2011 10:01 am

demy2011


Arresto Menor
sir later on ko na lang naremember na they made me paid first before i signed a contract. Syempre ala na man ako alam, pay na ako agad. Nabasa ko kc online na dapat diniscuss muna nila contract or dinisclose muna mga risk before i sign kc ala na me choice.Me negligence po ba sila for their duty as a franchisor. Kc di rin nila sinurvey ung lugar ko.Feeling ko their just after franchise fee, care nila kung malugi ka..naging indigent tuloy ako dahil di nila binalik kahit piso.

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5 Re: aggrieved on franchise deal on Mon Jan 17, 2011 6:34 pm

attyLLL


moderator
again, please look at the franchise agreement. what are their obligations stated there?

the law will not rescue you from bad business decisions, but it will come to your aid if you were a victim of bad faith.


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6 Re: aggrieved on franchise deal on Fri Jan 21, 2011 9:43 am

demy2011


Arresto Menor
hi sir gud day !

ask ko lang po kung valid po ba ang contract if they made me pay first franchise fee before making me sign the contract. Since
wala na ako choice dahil naibigay ko pera. They did not discuss too the content of it. What if their intention is to made you appear you agreed on a contract. Is the contract valid?

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7 Re: aggrieved on franchise deal on Fri Jan 21, 2011 10:06 am

attyLLL


moderator
it was your call whether to ask for a copy of the contract first, and you ratified it by signing the agreement afterwards. do not use the excuse that you had no choice.


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8 Re: aggrieved on franchise deal on Fri Jan 21, 2011 2:51 pm

demy2011


Arresto Menor
thank you sir for giving me an enlightenment.

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9 Re: aggrieved on franchise deal on Sun Jan 23, 2011 1:54 pm

demy2011


Arresto Menor
gud day sir,

may i ask what the law says about refund policy. un po kc ang issue k. Tnx for taking your time.

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10 Re: aggrieved on franchise deal on Tue Jan 25, 2011 7:58 pm

attyLLL


moderator
to me, this is not an issue about refund where consumer rights apply.

in my opinion, what is applicable is the civil code on resolution of contracts. you will have to prove that there was a substantial breach of the agreement


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11 Re: aggrieved on franchise deal on Wed Jan 26, 2011 11:32 am

demy2011


Arresto Menor
Hi sir

chineck ko na po yung contract. Wala naman po non refundable nakalagay tsaka di rin napag usapan. Basta nakalagay P78,000 for one year use of their trade name, foodcart and equipment. Kaya lang 2 days k lang po ginamit tsaka nasoli ko na foodcart. Nagresearch po me now sa dti guideline to franchising.Nalaman ko 1 responsibility nila na di ginawa is to survey and evaluate my chosen location if it is their right market.When i returned their foodcart dun lang nila sinabi na supermarket daw. Para ho talagang napabayaan ako as franchisee

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12 Re: aggrieved on franchise deal on Wed Jan 26, 2011 11:34 am

demy2011


Arresto Menor
thank you po pala ulit. Pwede po ba me humingi ng tulong sa PAO since I cant afford lawyer as of noe. GOD bless.

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13 Re: aggrieved on franchise deal on Wed Jan 26, 2011 1:02 pm

^^ I doubt if PAO will take your case...only indigents are given the right to avail the services of PAO lawyers.

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14 Re: aggrieved on franchise deal on Thu Jan 27, 2011 7:52 am

demy2011


Arresto Menor
hi sir,

what do you think i must do to this case.What kind of action shall i do to this unfair situation.Do i need to file for small claim.

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15 Re: aggrieved on franchise deal on Thu Jan 27, 2011 7:02 pm

attyLLL


moderator
try filing your complaint at DTI. perhaps the franchisor will refund your money.


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Warning and Disclaimer: I am not your lawyer; and you are not my client. With the limitations of an  Internet forum, a thorough review of your concern is not possible. View my comments at YOUR OWN RISK. It is best to actually retain a lawyer for your individual concerns.
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16 Re: aggrieved on franchise deal on Thu Jan 27, 2011 7:24 pm

demy2011


Arresto Menor
hi sir,
thank you for all of your answers. It help me clarify my mind. God bless and Mabuhay po kau.

Demy Very Happy

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