Starting a Business

Can a franchisee sue a franchisor for misrepresentaton?

min read
Opinions expressed by Entrepreneur contributors are their own.
Franchises have been known to have a checkered past, which is why they involve regulation and disclosure documents. So, you <EM>can</EM> bring a lawsuit against a franchisor for misrepresentation, but it's not an easy claim to prove. A lot depends on how the disclosure documents were written and the promises that they contained. Before you throw a lot of money at litigation, consult with a franchisee lawyer who regularly litigates these kinds of issues to evaluate the strength of the case. It would be a shame to throw good money after bad.

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