Franchise legal question

[E-bmw]

I am not going to go into details as it would involve naming, which I can't do, so unfortunately I need to keep the question general in terms & lacking in detail.

A company provides an inspection service that is based on the franchise model.

A franchisee (sole trader I believe) does not carry out good service and can be proven to have done so by reselling a product bought with major issues then given a (fraudulent/incompetent) clean bill of health, thus inflating the price.

Is there any comeback on the franchisor as the loss is going to be well over £10,000 over the position that I would be in if the service carried out by the franchisee had been correct.

I ask because I suspect the franchisee is no longer in this business.

[Doofus]

It depends upon the relationship between the franchisor and the franchisee, and whether that created an employer/employee or a subcontractor situation. In practice, it's more likely than not that you don't have any comeback on the franchisor, but a formal complaint to them won't do any harm.

[E-bmw]

Doofus said:

It depends upon the relationship between the franchisor and the franchisee, and whether that created an employer/employee or a subcontractor situation. In practice, it's more likely than not that you don't have any comeback on the franchisor, but a formal complaint to them won't do any harm.

Pretty much my thoughts/expectations TBH.

We are lodging a formal complaint with them anyway & I was just wondering if there is any chance of success.

JUST THINKING.
If the franchisee is no longer in this business because he was found out (could be we aren't the only ones) does that help my chances?

[Doofus]

Maybe the franchisor will 'do the right thing' to protect their reputation, but they probably don't have an obligation to do so.

[E-bmw]

Doofus said:

Maybe the franchisor will 'do the right thing' to protect their reputation, but they probably don't have an obligation to do so.

No problem, thanks again.

[Amateurish]

Check the terms of your contract. Which company did you enter into a contract with.

[Doofus]

Hope you get something positive from them.

[E-bmw]

Doofus said:

Hope you get something positive from them.

Thanks, I will update when/if I hear anything, although by their own policies I have to give them 8 weeks before I can escalate further.

There is a (sort of) approved body that they are governed by, so I have them as an option also.

[E-bmw]

Amateurish said:

Check the terms of your contract. Which company did you enter into a contract with.

I actually didn't it was done before I purchased, hence the price being "full market" rather than "with issues" and my subsequent loss.

[E-bmw]

Doofus said:

It depends upon the relationship between the franchisor and the franchisee, and whether that created an employer/employee or a subcontractor situation. In practice, it's more likely than not that you don't have any comeback on the franchisor, but a formal complaint to them won't do any harm.

I have just googled their "become one of us" page to see what it says & it does not indicate who I am talking about with these words, so this is what they say.

"our workers are franchisees running their own business under our brand with our support."


ETA.

"franchisees only operate under our authority when providing the services listed on our website"

[Boringvolvodriver]

As above, check the terms and conditions if you can although from what you say it sounds like you did not enter into the contract for the inspection.

If you had arranged for the inspection then you may be able to make a claim against the franchisee even if he has left the business but unless you can get the party who did that to do so, making a case May be difficult.

I would try to obtain recompense from the franchisor (who may wash their hands) and failing that perhaps have a free half hour chat with a lawyer to see what May be possible.

Do you have Legal Cover on either your household or car insurance as they would perhaps be worth a call?

[E-bmw]

Boringvolvodriver said:

Do you have Legal Cover on either your household or car insurance as they would perhaps be worth a call?

That is one I am currently keeping in my back pocket for if/when the franchisor doesn't come good.

[Sebring440]

E-bmw said:

if/when the franchisor doesn't come good.

Just for clarification: you didn't commission the inspection, therefore you have no contract with either the franchisee or the franchisor?

Is that correct?

[E-bmw]

Sebring440 said:

E-bmw said:

if/when the franchisor doesn't come good.

Just for clarification: you didn't commission the inspection, therefore you have no contract with either the franchisee or the franchisor?

Is that correct?

That is correct, the "inspection" was done prior to my agreement to purchase & indicated that it didn't have any major issues.

I purchased on the strength of that "inspection" giving it a perceived value, which now turns out to have been WAY higher than it's actual value at the time of purchase due to the issues that have now come to light.

[Doofus]

E-bmw said:

Sebring440 said:

E-bmw said:

if/when the franchisor doesn't come good.

Just for clarification: you didn't commission the inspection, therefore you have no contract with either the franchisee or the franchisor?

Is that correct?

That is correct, the "inspection" was done prior to my agreement to purchase & indicated that it didn't have any major issues.

I purchased on the strength of that "inspection" giving it a perceived value, which now turns out to have been WAY higher than it's actual value at the time of purchase due to the issues that have now come to light.

Regardless of the franchise bit, I'm pretty sure the results of the inspection are expressly intended for the person who commissioned it, and you cannot legally rely on it in any way without the inspector's permission.

You may have recourse to whoever you purchased the item from, and they may have recourse to whoever inspected it, but you don't.

[E-bmw]

Doofus said:

E-bmw said:

Sebring440 said:

E-bmw said:

if/when the franchisor doesn't come good.

Just for clarification: you didn't commission the inspection, therefore you have no contract with either the franchisee or the franchisor?

Is that correct?

That is correct, the "inspection" was done prior to my agreement to purchase & indicated that it didn't have any major issues.

I purchased on the strength of that "inspection" giving it a perceived value, which now turns out to have been WAY higher than it's actual value at the time of purchase due to the issues that have now come to light.

Regardless of the franchise bit, I'm pretty sure the results of the inspection are expressly intended for the person who commissioned it, and you cannot legally rely on it in any way without the inspector's permission.

You may have recourse to whoever you purchased the item from, and they may have recourse to whoever inspected it, but you don't.

OK, still got nothing to lose in trying, not holding my breath though obviously.

[V8 Bob]

Surely you need to sue the seller for providing a false report, it is then up to them to sue the franchisee who supplied the report for negligence.

[BertBert]

V8 Bob said:

Surely you need to sue the seller for providing a false report, it is then up to them to sue the franchisee who supplied the report for negligence.

OP, what is the relationship between the seller and the inspector? What is the relationship between you (as buyer) and the seller?

[e-honda]

How do you know about them being a franchise ?
Was it quite clear from the outset you were dealing with an independent franchisee ? or did this information only come to light after you started digging in to it?

[Amateurish]

If you didn't commission the report then you won't have any comeback. Your only possible route to compensation will be from the seller of the vehicle.