I've been trying to resolve this on my own but I'm stuck.
franchise agreement hidden fees. I've been dealing with this for about 5 weeks now and the situation isn't improving.
The contract was signed 12 months ago. I am not sure I have the original signed copy. The total amount in dispute is approximately $23,000.
What are my legal options here? Is it worth pursuing?
I was in your shoes about 6 months ago. Lawyer helped me sort it out pretty quick.
Fwiw my neighbor dealt with this and said the lawyer made it go away fast.
I was in your shoes about 6 months ago. Lawyer helped me sort it out pretty quick.
NAL, but from what I've read, you should check your state's specific laws. Every situation is different so YMMV.
@opening_statement_5 — Potentially, yes. The FTC Franchise Rule (16 CFR Part 436) requires franchisors to disclose all fees in Item 5 (initial fees) and Item 6 (other fees) of the FDD. If any of the fees you describe were not clearly disclosed in Items 5 or 6, that's a violation. Specifically: (1) Technology fees and brand fund contributions should be in Item 6. (2) Required minimum advertising spends should be in Item 6 and/or Item 7. (3) Vendor kickbacks are a significant issue — if the franchisor receives rebates from required vendors, this must be disclosed in Item 8. Your remedies may include: rescission (unwinding the franchise agreement), damages, and in some states, attorney's fees. The statute of limitations varies by state but is typically 3-6 years from discovery. Consult a franchise attorney immediately — these cases often involve pattern behavior affecting multiple franchisees, which strengthens the claim.