Getting out of a Franchise Agreement

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Getting out of a Franchise Agreement

My franchise contract says I cannot own or operate a simliar business inside of 5 kms from the existing frachise that I own. How do they measure this? On google there are answers from 4.2-5.4 km’s depending on how you enter it. How will the franchisee measure this and what can he do to me if I do buy the new business and then he finds out?

Asked on June 17, 2009 under Business Law, Michigan

Answers:

B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

I'm not a Michigan lawyer, but in most states, that kind of distance is measured in a straight line, not along the roads, between the nearest point  of the two properties.

The first place to look, for what the franchise owner can do if he finds out that you're in breach of contract, is the franchise agreement itself.  I suspect that there are some unpleasant possibilities there, and you've already agreed to them.

Before you commit yourself to the new location, and the breach of your franchise agreement, I think you really need to have a local attorney review all of the facts, including the agreement, for reliable advice about how to go forward.  One place to find counsel is our website, http://attorneypages.com


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