Divya V N 10 December 2018

Franchisee agreement

Problem: I and my friend has entered a MOU(for franchisee investment) with a m/s company.. we both contributed 3 lakhs each to m/s company, where the company agreed to us to become franchisee to the sales counter and to give a net profit of 50% per month or minimal of rs 9,000 per month whichever is higher. But they couldnt start the sales counter and didnt repay the money with 1 month as per the agrrement .. 4 months passed there is no repayment of minimal amount or the principal. Solution: we have got the post dated cheques from the company and those details also mentioned in MOU and it is registered. Actions: Today we met him and hes agreed to pay the minimal amount for a post dated cheque on friday.. in turn we are entering a new agreement where we will the forfeit the franchisee agreement and recieve a monthly interest of 2% per annum for 3 months and he will repay the principal in 3 months., and we will register this agreement as well. my question is it legal to enter this agreement as we dont have a licence to lend money on interest? if its not legal what should be the next plan of action as hes agreed for settlement. Guidance??? Please help

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3 Replies

Siddharth Srivastava (Advocate) 10 December 2018

As such there is no illegality but by making such agreement M/s. company is taking away to initiate action against Post dated cheques and if the company would not make payment under second agreement then the only remedy would be civil court. Act prudently and press for payment without giving any further time.

Kumar Doab (FIN) 11 December 2018

You could have consulted before signing on dotted line 1st time.

You may consult your own LOCAL counsel atleast this time before you sign this time..

You are not being paid the principle amount on the spot.

Why should interest attaract/allure anyone?

Rest; IT is entirely your call and you may proceed as demmed fit to you at your end.

Kumar Doab (FIN) 11 December 2018

You may take help for any matter from, elders of your family, competent and experienced well wishers, seasoned PIP’s, helpgroups, community leaders, NGO’s, experienced colleagues, associations, religious scholars/leaders, influential persons, Employee’s/Trade union leaders, help groups for spouses (Husband/wife) etc and find a very able LOCAL counsel specializing in concerned filed of law e.g; Company/Civil matters as in your case, and well versed with LOCAL applicable rules, precedence, latest judgments etc …. and worth his/her salt, can advise you after examining all case related docs, inputs, evidences on record.

Obtain proper legal opinion in writing!

Avoid acting on your own on hearsay.

One should not fall for IT’s and entities loitering at online portals to allure unsuspecting querists. There are many threads on such instances at LCI also.

Online discussions are not substitute to in person discussions with a very able counsel of unshakable repute and integrity specializing in concerned field of law.

One should not fall for IT’s and entities loitering at online portals to allure unsuspecting querists……the personal details of unsuspecting querists/citizens get stored in databanks/compromised……hacked.

Such IT’s and entities keep on poping up at online portals with fake and new ID’s after their old ID’s are permanently blacklisted/shunted out and money fleeced from unsuspecting is finished.

There are such very able counsels at each location.

Check for such counsels at LOCAL; NCLT/Civil Courts, HC, SC,..

You can also try for FREE legal Aid from Legal aid center (DLSA) that is usually within LOCAL courts complex..preferably from a very able counsel specializing in Company/Civil matters.

Your counsels can advise after examining all docs/record/inputs pertaining to your matter and help you. You can also search threads on similar query in SEARCH option ON left Hand side of threads in Forum/Experts section. Having learnt a lesson, remember to consult beforehand for your matters or any matter about which you are not properly informed.

There have many instances of such entities operating with multiple fake Id’s at online portals.

The FEE of all LOCAL counsels at all LOCATIONS is not high/unreasonable as mis-believed by many.

Many counsels even at State Capital/Metro towns do not demand unreasonable high FEE.

IT is rather at online portals that unsuspecting querists are mislead as per many publications, by IT’s and Entities that pose as some Lawyer (actually LIAR) and flaunt/advertise firms that are not Law Firms (Actually LIAR’s Firms) to believe that LOCAL counsels are not knowledgeable..are incompetent.

In Reality the LOCAL counsels win cases in LOCAL courts at all LOCATIONS.

You can go thru/search the cases contested by any Lawyer at court website.