Last year I took a loan and bought a 'cleaning' franchise. I was sold the idea and told how well the company was doing etc - everyone knows the deal lol. The franchisor seemed more of a salesman really, in hindsight! But it looked good and simple, so I thought I would go for it, hving little business experience (I told him this too).
After a few months, I had one client! I did all that I was shown as per the manual. I had a meeting with the franchisor a few months later and he refused to believe me when I said I had exhausted all the leaflets they had given me. I said I had used all my cash and was struggling as it was the business plan that wasn't working. After the meeting it was suggested that the price structure was wrong (which they had set apparently on looking at my post code area) and a new price structure was put in place. I tried even harder and started to radio advertise in an attempt to gain custom. I aquired a few more clients, but nothing like the projections. I had run out of cash and explained to the franchisor that I was struggling. I was honest and up front about my cash problem. I did suggest bankruptcy, which seemed to petrify him. I was a bit annoyed that his 'pitch' about coming over to the area and sorting it out if things went wrong never happened. I don't think I was supported enough, even when I told him of the failings. I was honest and I don't think he was.
Then, last monday, I received a two line email, no warning or phone call, saying my license had been revoked with immediate effect. I said I would try and pay it out of my own cash (by getting another job) in a vain attempt to keep things going and not getting into trouble. I received a two line email saying no and to stop trading and return items. I asked what items they wanted and what was mine from the puchase fee of nearly 10K. No reply. I decided to write to my clients and tell them my area would not be operating and I would send there details to head office as a common courtesy. I sent an email to the franchisor saying I would send all items back that I had. I then received a new two line email telling me that I would next be heaing from his solicitors. My brother rang the franchisor as I was in shock and he said I never closed the company down properly and he wouldn't be able to collect cash from my clients!! I had asked for instructions, I have tried to do the best by my clients and now I'm going to be sued.
I don't feel I was not given any correct help or instruction throughout this matter. I feel let down and petrified that I will lose everthing. The business projections do not ring true, neither did anything else. The franchisor is being so nasty - he has already had 10k now he want s to ruin me. Is it wrong to have just had a call to tell me that he was taking away my license or at least instrution on what to do?
Awaiting a kind measure of advice...
Dont be intimidated by this clown. speak to your solicitor and try and find other people who may have went through same thing. Call trading standards as well. be strong