What are my rights if I entered into a franchise agreement but the facts were mispresented?

They have not followed through with the schedule or time I was advised I would get upon getting my franchise certification. It has been 4 months. With the information that my decision was based on by the center owner, my investment would have been paid off in 6-8 months. The owner has since not given me the schedule that she asked me to do and now says she does not have the money nor the clientele to warrant giving me more time. At the current rate my investment will take over 3 years to earn back now and has now become a financial burden not an asset. I based my franchise on the schedule that was offered.

Asked on August 26, 2013 under Business Law, Pennsylvania


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

If there were misrepresentations--essentially lies--in regards to material, or important facts, then that may be fraud. Fraud provides a basis to, depending on the exact circumstances, either rescind a transaction (undo it) or seek monetary compensation. Misrepresentations in regards to the rate of return on an investment, or how long it would take to be repaid, would certainly seem to be a material misrepresntation; therefore, this may be fraud. If the amount you invested is greater than the small claims limit for  your jurisdiction, you should consult with an attorney; if it's less than the small claims threshold, you probably your file your own fraud claim pro se (as your own attorney).

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