What should I do if the franchise company delays in delivering the goods?

What should I do if the franchise company delays in delivering the goods? The defendant in this case, as the franchisor, failed to provide the plaintiff with materials and other operating resources as agreed, and neglected to perform its contractual obligations, which constituted a fundamental breach of contract, and the judgment refunded the franchise fee of 150,000 yuan

The cases are as follows:

On November 24, 2015, the plaintiff, Mr. Peng, signed a Regional Agency Contract with a company of the defendant. During the performance of the contract, the defendant was unable to ensure the timely supply of raw materials for a long time, resulting in its frequent delays in delivery, or out of stock, the plaintiff's operation was damaged and could not continue to operate, and the inability to communicate normally led to its inability to obtain corresponding services. After consulting the franchise company what to do if the shipment is delayed, it sued the court and requested: to terminate the "Regional Agency Contract"; the withdrawal fee and other 200,000 yuan.

After trial, the court held that:

The Court believes that commercial franchising refers to the business activities of a franchiser who owns registered trademarks, enterprise logos, patents, etc., licenses the business resources owned by him to other franchisees in the form of a contract, and the franchisee carries out operations under a unified business model in accordance with the contract and pays the franchise fee to the franchiser.

In this case, the defendant authorized the plaintiff to use the ** logo, product technology and investment promotion and management cooperative stores in the agency area, and the plaintiff engaged in agency business activities in the defendant's business model according to the provisions of the contract, so the contract in this case should be a franchise contract, which is the true intention of the parties, and does not violate the mandatory provisions of laws and regulations, and is legal and valid. The agency fee paid by the plaintiff to the defendant was a franchise fee in nature. Franchise resources are the statutory basic requirements for a franchise enterprise to carry out franchise activities as a franchiser.

In this case, the defendant, as the franchisor, failed to provide the plaintiff with materials and other business resources as agreed, neglected to perform its contractual obligations, and the two parties were unable to achieve cooperation and exchanges, resulting in the plaintiff's inability to carry out business activities in accordance with the contract, contrary to the expected interests and purpose of the contract concluded by the two parties, and its conduct constituted a fundamental breach of contract, so the plaintiff's claim to terminate the contract involved in the case was supported by this court.

After the contract is terminated, if it has not been performed, the performance shall be terminated; Where performance has already been performed, depending on the performance and the nature of the contract, the parties may claim restitution, take other remedial measures and have the right to claim compensation for losses.

The deposit of $10,000 paid by the plaintiff to the defendant should be returned. With regard to the amount of agency fees, this court considered that the plaintiff had obtained the defendant's franchise resources for operation and use, and combined with the operating income during the operation period, its own fault and other factors, the amount of the agency fee that the defendant should return was determined by this court to be 150,000 yuan.

In summary, the plaintiff's claim to rescind the contract and return the above-mentioned expenses has a factual and legal basis, and this court supports it.

Final Court Judgment:

Termination of the Regional Agency Contract; The defendant returned the plaintiff's agency fee of 150,000 yuan and the security deposit of 10,000 yuan;

▸ "How to refund the franchise fee" related cases (see more) ◂

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1. How to negotiate with the company to refund the franchise fee?

2. Is it legal to refund the franchise fee? Just paid the franchise fee

3. What should I do if the franchise fee is not refunded? The lawsuit against the franchise company was not filed with the Ministry of Commerce, and the court ordered a refund of 98,000 franchise fees of 70,000 yuan

4. Does the franchise store not want to open a franchise fee? The defendant in this case did not have the lack of operating resources of the two stores for one year, and the judgment decided to refund the franchise fee of 27,000 yuan at its discretion

5. What should I do if the franchise fee is not returned? The franchise contract in this case is invalid, the plaintiff is not at fault, and the defendant should refund the franchise fee of 46,800 yuan in full

6. How to refund the franchise fee after joining? In this case, the franchise company could not perform its main obligations, and the plaintiff told the applicant to terminate the agreement on the basis of law, and the franchise fee of 56,000 yuan was refunded as appropriate

7. Can I get a refund after signing the franchise contract? Court: The plaintiff has been in business for less than one month, and has not used the operating resources to continue to operate after the suspension of business, and will refund the franchise fee of 100,000 yuan as appropriate

8. How to refund the franchise fee? Court: The act of the franchise company was sufficient to cause the plaintiff to make a false expression of intent and decide to refund the franchise fee of 30,000 yuan

9. How long does it take to join the franchise fee? Court: The plaintiff has been in business for 8 months, and the defendant is determined to refund the franchise fee of 150,000 yuan

10. Can I get the franchise fee back? Court: The defendant's conduct violated the law and caused a substantial impact on the plaintiff's operation, and the franchise fee was refunded 46,000 yuan

11. How to refund the franchise fee? The defendant in this case did not have the franchise resources itself, and the judgment was to refund the franchise fee of 40,000 yuan in full

12. What should I do if the franchise company does not refund the franchise fee? Court: The defendant did not provide 3 months of guidance and support in accordance with the contract, and the full refund of the franchise fee was 150,000 yuan

13. Can I refund the franchise fee? The franchise company in this case did not provide evidence to prove that it had owned two stores for one year, and the court ruled to refund the franchise fee of 25,000 yuan at its discretion

14. Can the franchise store refund the money if it doesn't want to do it? Court: The franchise company made a misleading statement in the contract and ordered to terminate the contract and refund the franchise fee

15. Can the franchisee refund after signing the contract? In this case, the defendant assumed the main responsibility for the invalidity of the contract, and the plaintiff assumed secondary liability, and the judgment was discretionary to refund the franchise fee of 50,000 yuan

16. Can the money of the franchise store be refunded? Court: The franchise company conceals key information, violates the principle of good faith, and refunds the franchise fee of 50,000 yuan as appropriate

17. What should I do if the franchise company does not return the money? The court: If the continued performance of the contract is obviously unfair to the plaintiff, the judgment to terminate the contract will refund more than 170,000 yuan of the purchase price

18. Successful case of franchise fee refund: The defendant in this case deliberately concealed true information and provided false information, inducing the plaintiff to sign a contract, and ordered a full refund of the franchise fee of 210,000 yuan

19. Franchise refund lawsuit: During the trial of this case, both parties agreed to terminate the contract, and the court ruled to refund the franchise fee of more than 180,000 yuan

20. How to sue if the franchise store does not give a refund? Although the franchise company in this case was at fault, it conducted training, provided services, and decided to refund the franchise fee of 36,000 yuan

"51 Franchise Fee Network (Shanghai)" is excerpted from: Hefei High-tech Industrial Development Zone People's Court (2016) Anhui 0191 Min Chu No. 3612 Judgment

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