i purched a franchise for a business the onriginal co sold to a large corp. they forced' s me to loose the franchise then sold

it to another now they have put a lein on my home what can i do? - Is this your question? Add additional information
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Answers (3)

Nancy L. Lanard

Nancy L. Lanard

Contributor Level 3
If this is in NY state you should contact the NY Attorney General's office and discuss your issue with them to see if they will pursue the matter on your behalf. NY has a state franchise law which may protect help you in your situation. Without reviewing the actual franchise agreement you signed, I am unable to determine if you have a case against the large corporation or the original company. Most times franchisors do not include restrictions on their ability to transfer the franchise to another company. However, you most likely have rights under your agreement which should be explored by both the NY Attorney General's office and a private franchise attorney in NY to advise you.
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Lynne D Shelton

Lynne D Shelton

Contributor Level 4
Without knowing what your Franchise Agreement states, you may still be liable for whatever funds they are placing the lien on your home for. However, there may be clauses that affect their ability to collect from you since they were not the original franchisor. You should contact a franchise attorney to have them review your specific Franchise Agreement.
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Kevin Brendan Murphy

Kevin Brendan Murphy Avvo Pro

Contributor Level 5
The answer depends on how the franchise company forced you to lose your franchise, and which company it was - the original one or the successor entity. If they engaged in conduct that was in violation of the terms of your franchise agreement, or in an unfair business practice proscribed by law, you have a defense but will need to fight the lien. Show your franchise contract and discuss the circumstances with a franchise attorney.

Kevin B. Murphy, B.S., M.B.A., J.D.
Mr. Franchise
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