Company Stealing €15,000

D

dillon1876

Registered User
Messages
29
I was taking a look at a possible franchise, and decided to go ahead with it. I signed an "intend to proceed" document which was a 9 month agreement. I paid €15,000 refundable deposit. Then i heard that someone is opening a similiar type franchise in my town and is ready to open. So i decided it was not a good idea to proceed and terminated the agreement and requested my money back. The company wrote to me and stated that i was not entitled to any refund of any monies and wished me well! This is the most ridiculous thing i have ever seen! I left the info in with my soliciotor today. Can this company really get away with this?
 
What lead you to believe that the deposit was refundable ? Does it state it in the contract ?
 
Yes. It states in the contract that it is a refundable deposit less any reasonable expenses. There were zero expenses on the companies part. I know it will probably have to go to the courts to be resolved.
 
did they tell your the reason they are keeping it ?

did you point out the contract details to them ?

did you have someone look over the contract before you singed it..
 
Do not name the company on Askaboutmoney. It's my home will be on the line defending the defamation case, not onlineprint's

Brendan
Administrator
 
It states in the contract that upon termination of the 9 month agreement form, the deposit is refunable. But beacuse we pulled out of the agreement, the company are saying we are obliged to go for another location. It does not state this in the contract. How can a company justify that they can keep €15,000 for doing nothing whatso ever on any shape or form. I dont know if they are just chancing their arm or what the story is here.
 
how come the same franachise was allowed open up near you?. Dont frachise companies give you your own "turf"?
 
dockingtrade said:
how come the same franachise was allowed open up near you?. Dont frachise companies give you your own "turf"?
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i think there could be more going on here than we know about....
 
No. I've told you the main parts of the case. A previous person who looked at the franchise is opening independently in the area that we were considering in opening. The company are outraged that we are not proceeding and greed has got the better of them and they simply do not want to return our "refundable" deposit.
 
Surely the disgruntled franchisees had the cop on to know that they should seek independent advice and do their own research instead of just taking for granted stuff like projected sales figures from an organisation with a vested interest in taking their money?
 
I agree with you completely, but even though you are entirely right; the whole affair reflects badly on Godfathers in the publics eyes.

Anyways I don't want to detract from the original purpose of this thread - I was just adding a small note which may be of interest.
 
dillon1876 said:
No. I've told you the main parts of the case. A previous person who looked at the franchise is opening independently in the area that we were considering in opening. The company are outraged that we are not proceeding and greed has got the better of them and they simply do not want to return our "refundable" deposit.
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in that case its time to haul them into court...

make sure you have someone check the contact really carefull first... but I would persume you have a good case....
 
They are an english company and the cost of going to court is wicked and we loose the case, we wil be out the same money again! But I still feel like taking the risk as I believe we have a strong case.
 
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