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Termination of Franchise contract

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1 Termination of Franchise contract on Wed May 18, 2011 3:54 pm


Arresto Menor
Good day Po Atty,

My Mother is a retired gov't employee in a very low position and she bought a franchise from crystal clear from her retirement benefits, before the sales was Ok but after a while the sales go down and arrived into a break even situation due to many uprising competitors in the area, we decided to terminate the franchise contract because we can no longer pay the monthly royalty fee (MRF), we send them a letter of notification that we can no longer pay the 6,000Php MRF, but they told us that if we will terminate the contract they will charge us 100,000Php for the termination of contract, I replied that we cannot pay the 6,000 php but still you are forcing us to pay tha 100,000Php, to minimize the argue I told them that we would pay you, if the sales will rise up again in other word we will pay when we are able. my question is this are we in the right decision or are we just making a big mistake...

Thank you and more power

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2 Re: Termination of Franchise contract on Sat May 21, 2011 3:04 pm


that will all depend on what happens in the future. if the franchise earns, then it was a wise decision.

the law will not rescue you from bad business decisions.

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