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Franchise owner here facing breach of contract and unethical practices
08-Aug-2023 (In Breach of Contract Law)
I am a franchise owner of a car detailing services company named Khreedo India. I had paid 30000 as franchise fees and a legal contract in which the company claimed to give 60 orders per month but it failed to do so. Also, many penalties were imposed on us which were not even mentioned in the contract. Due to this my 1st month's bill generated was in minus 4500 and the company is asking us for money. I had done a business of around 20000 in the month and deducting all that money they gave me this final bill. So now I have lost the rs.30000 of the franchise which I invested plus Rs.20000 of business which I did, plus Rs. 20000 labour payment which I have to do for this month. so a total of Rs.70000 loss. Surely there were some orders which I could not complete but the penalties which they imposed are way out of the league and were not mentioned in the contract. please help im in financial crisis.
You can avail remedy only by filing a civil suit. But what remedy you can get depends on the exact terms of the contract between you and the owner.
You can claim specific performance which means that you can compel or force the owner to perform the exact contractual terms or ask for compensatory damages. You can also try to recover the penalties they imposed on you if they are illegal.
However, this is not any legal advice as proper advice would only be possible after reading the contract terms.
You can claim specific performance which means that you can compel or force the owner to perform the exact contractual terms or ask for compensatory damages. You can also try to recover the penalties they imposed on you if they are illegal.
However, this is not any legal advice as proper advice would only be possible after reading the contract terms.
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Adv. Mrinalika Devarapalli
Mumbai | 25+ Answers
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Hi, we will need to see your contract. Prima facie it appears like a case of unconscionable contract. However any opinion can be given only after review of the contract. You may pls reach out to us with detailed query.
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