Can I exit a franchise early if the franchisor promised profits verbally but it's not in the agreement?

Question

I took a food franchise in India and the sales are far below what the franchisor’s team assured me during meetings. The franchise agreement doesn’t mention any guaranteed revenue, but I have emails and messages about expected numbers. Can I terminate and recover my fees, or will I face penalties?

Taneja Law Office · Accepted Answer

Of course, you can. Whether there will be penalties or not can be ascertained by going through the Franchise Agreement. Unless this office has access to the Agreement, it will not help rendering a legal opinion on the question.

Lexim · Answer

Your position depends on misrepresentation, inducement, and contractual termination rights. Even where no revenue guarantee is written, Indian law recognises liability if the franchise was sold on false or misleading projections that materially influenced your decision.

Can I exit a franchise early if the franchisor promised profits verbally but it's not in the agreement?

Lawyer Answers

Taneja Law Office

Lexim

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