We franchised our delis in philadelphila and new jersey

Asked over 1 year ago - Philadelphia, PA

the delis went out of busniess oweing us money we have contracks they just closed the doors no notice in writing breach

Attorney answers (9)

  1. Ross Marvin Miller

    Contributor Level 11

    4

    Lawyers agree

    Answered . You should speak with an attorney about seeking damages. A lawyer will have to review your documents and advise you more specifically. I handle these types of matters, fee free to call me for a more detailed consult.

    Contact me for a more detailed discussion of your issue at 215-822-7575, or by email at rmm@rgsglaw.com. This... more
  2. Bradley Joseph Osborne

    Contributor Level 10

    3

    Lawyers agree

    Answered . Sir you need to sit down and speak with a qualified attorney that is licensed in those states and handles these sometimes complex business disputes that may result in litigation.

    Any attorney will have review your contracts to determine the next step. You should also provide a short but detailed narrative.

    Our office is licensed in both states and handles these types of issues regularly. Please reach out to us for a free consultation.

    Best of luck!

    The materials on this site are provided for general informational purposes only. The information in not intended... more
  3. Bruce E. Burdick

    Pro

    Contributor Level 20

    4

    Lawyers agree

    1

    Answered . Oops, you forgot to state a question. It is hard to give you advice when we do not know what you want to know. If they stopped using the trademark and removed all the signage than what you need is a contract lawyer to evaluate the advisability of suing them for breach of contract. If they have not stopped using the trademark, then the you need to try to recoup all of the materials that are branded with your trademark or service mark. You will likely want to consult with, and intellectual property law attorney to see that these franchisees have not established any independent rights, particularly if you do not have a franchise agreement. Hopefully you have a agreement that spells out what happens with the trademark. What happens with the trademark is probably more important to you in the long run than with you collect your money or not.

    I am not your lawyer and you are not my client. Free advice here is without recourse and any reliance thereupon is... more
  4. Keith G Langer

    Pro

    Contributor Level 19

    4

    Lawyers agree

    Answered . You fail to state a question.

    If you seek remedies, take your documentation to an attorney who does business litigation. Note that you will have to find the defaulting parties, who may - or may NOT - have reachable assets.

    The PA and Philly bar associations can assist you with referrals.

    The foregoing is for general information purposes and does not establish an attorney-client relationship.
  5. Robert John Murillo

    Contributor Level 20

    3

    Lawyers agree

    Answered . You will have to hire an attorney for breach of contract and other terms. Your rights, options, and dispute resolution terms all should be in your franchise and related agreements.

    This answer is for informational purposes only and is not legal advice regarding your question and does not... more
  6. Daniel Nathan Ballard

    Contributor Level 20

    3

    Lawyers agree

    Answered . The very heart of a franchise agreement is a trademark license that permits the franchisee to use the franchisor's trademark [here, the trademark is the name of your deli]. When a franchisee suddenly stops doing business sometimes a partner or employee or competitor gets the crazy idea that they can open up a new shop using that same trademark [after all, the old trademark is no longer being used]. So, as the franchisor, YOU need be especially vigilant to ensure that this does not happen. You should also make sure that the sign with your deli name that's on the buildings formerly used by your franchisees is removed. You may also need to expressly abandon any fictititous business name statements filed by the franchisees. In short, in addition to trying to recover whatever money the former franchisees own you, you need to spend some time making sure your trademark [which is literally the symbol that embodies all the goodwill of your business] is not damaged. Speak with a franchise attorney licensed to practice in your state and discuss these trademark issues [that attorney may need to bring in a trademark attorney -- which will be for certain if you DO NOT have a franchise agreement]. Good luck.

    The above is general information ONLY and is not legal advice, does not form an attorney-client relationship, and... more
  7. Kevin Brendan Murphy

    Pro

    Contributor Level 15

    1

    Lawyer agrees

    3

    Answered . As a franchise attorney helping companies franchise as well as advising individuals, as a franchise expert, on making franchise investments, I agree with my colleagues and add the following.

    Part of the planning that should have preceded your entry into franchising was to deal with this possibility. Was this done? Especially in today's economic climate, businesses simply close the doors. Normally a franchisor provides for a variety of protective measures, like personal guarantees, step-in rights, de-identification, etc. to protect itself and its intellectual property if (when) something like this happens.

    My best advice is to have a franchise attorney review the contract to see what rights and remedies are available, then to advise on the best going forward strategy.

    This is something you should do asap.

    Best of luck,

    Kevin B. Murphy, B.S., M.B.A., J.D.
    Franchise Attorney & Franchise Expert
    Director of Operations - Mr. Franchise
    FRANCHISE FOUNDATIONS APC

  8. Jeffrey Bruce Gold

    Pro

    Contributor Level 19

    2

    Lawyers agree

    Answered . Presumably you also have personal guarantees. If you don't you may want to have another lawyer evaluate the performance of your Franchise contract attorney.

    If you'd like to discuss, please feel free to call. Jeff Gold Gold, Benes, LLP 1854 Bellmore Ave Bellmore,... more
  9. Nancy L. Lanard

    Contributor Level 13

    Answered . Your brief message does not provide any of us with enough information to help you. If you would like to give me a call I would be happy to provide an initial consultation free of charge. You can call me at 215-525-1165 x101.

    This response does not create an attorney-client relationship and is not intended to provide legal advice for your... more

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