Franchise Dispute Demand Letters

"I purchased a [Brand] franchise on [date], paying $[initial franchise fee] plus $[other amounts] in initial investment. Prior to signing, I did not receive a Franchise Disclosure Document in compliance with FTC Rule 16 C.F.R. § 436.2, which requires delivery at least 14 calendar days before execution of any franchise agreement or payment. [Alternatively: The FDD I received contained material misrepresentations regarding [describe - e.g., Item 19 financial performance representations that significantly overstated typical franchisee revenue].] Under California Corporations Code § 31300, I am entitled to rescission of the franchise agreement and return of all amounts paid, plus interest. I hereby demand: 1. Rescission of the Franchise Agreement dated [date] 2. Return of the franchise fee: $[amount] 3. Return of other payments made to franchisor: $[amount] 4. Interest at the legal rate from date of payment Please respond within 14 days confirming your agreement to rescind and your proposed timeline for refund."

"Section [X] of my Franchise Agreement grants me an exclusive territory defined as [describe - e.g., a 3-mile radius from my location at 123 Main Street / the area bounded by Highway 101, Oak Street, Elm Avenue, and Pine Road]. I have learned that [Brand] has [opened / plans to open] a new location at [address], which falls within my protected territory. [Alternatively: The franchisor's online sales program now delivers directly to customers in my territory, in violation of my exclusive rights.] This encroachment violates Section [X] of the Franchise Agreement and constitutes a breach of the implied covenant of good faith and fair dealing. Since the competing location opened, my sales have declined by $[amount] or [X]%, representing damages of approximately $[amount] to date. I demand that you: 1. Immediately cease operations at the encroaching location; OR 2. Compensate me for lost profits and modify my royalty obligations to account for the reduced territory If this matter is not resolved within 21 days, I will pursue all available remedies including injunctive relief and damages."

"When I signed my Franchise Agreement, [Brand] promised [describe promised support - e.g., a comprehensive 4-week training program, ongoing field support visits quarterly, national advertising campaigns funded by the marketing fund]. Since opening on [date], the following promises have not been fulfilled: - Training: I received only [X days/weeks] of training, not the [Y] weeks promised in Section [X] and Item 11 of the FDD - Field Support: No field representative has visited my location in [X] months, despite the FDD stating quarterly visits - Marketing: The marketing fund has collected $[amount] from me, but I have seen no local or regional advertising. [If applicable: The FDD disclosed marketing fund expenditures showed [X]% spent on administration rather than advertising.] These failures constitute breach of contract and, potentially, fraud in the inducement if the representations were false when made. I demand: 1. Immediate delivery of the promised training 2. Refund of marketing fund contributions: $[amount] 3. Reduction in royalties to compensate for inadequate support Absent a satisfactory response within 14 days, I will consult with counsel regarding claims for rescission, breach of contract, and violation of the California Franchise Investment Law."