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sachin (GM)     10 December 2010

Civil or consumer case for Cheating by Franchise

 


   
I was running a franchise of English education center since march 2008 and added another computer institute who offered Business proposal  backed by  Advertising , Marketing and Technical  support where they asked me to invest Rs. 10-15 laks in the project and assured me the returns of 1lack above monthly income. After series of negotiations we agreed on following:

a)    Both the franchise will co exist and the area is sufficient for the Both the centers to operate simultaneously as mainly the timings for both classes were different.

b)    I will pay franchise fee in two parts and accordingly will make agreement.

c)    As it was the Job Guaranteed course, they will provide job guarantee and placement to all students and I personally will not be responsible for the same.

d)    They will provide the faculty , marketing staff and  free Advertising support for First 3 years.

 

Thereby,        I started centre on 15 OCTOBER, Company agreed to give franchise after inspecting the already running centre but after receiving all the money it raised unnecessary irrelevant and baseless objections

·         Later after taking all the franchise fee they forced me to close my already running English speaking centre and run only  Computer education which was never agreed. And as a result  I was not even able to meet daily expenses which was never a problem initially.

·         Finally company closed the centre  as per letter dated 13 / 05 / 09  mentioning labs are not spacious to conduct the practical classes and other infrastructure is not available. Etc.     

·         Company also withdraw job guarantee scheme and advertisement scheme. Etc.

·         On cancellation, when I asked them to return my  money  then, with the same premises, same rooms, same unspacious labs the company gave permission to  start the centre again.

·         The entire episode proves that the company is habitual of blackmailing the franchisee just to make more and more money on the basis of irrelevant and baseless observations and also did not enforse the legal aggrement so as to avoid legal implications. This company has robbed me of  3.36 lacs Franchise fee + 2 Lacs Furniture / fixture /Infrastructure + 1.5 Lack Brand Publicity / + 2 lacs in the name of  equipments/ start up kit facilities/ books which was of very poor quality, 1.5 Lacks on computer etc ( for which I do not have all the bills etc)

1.     Will I be able to get all the money spent on furniture / Infrastructure, Advertisement computers etc also ( for which I do not have bills)?

2.    They have not  signed the agreement but they have taken Non refundable sum of  3.36 lacs as Technical Know-how fee  on Memorandum of Understanding. Will “non refundable” word hold good and I will not get anything as they have mentioned non refundable in MOU ?

3.   Can I file consumer case as it was for my  livelihood instead if civil and at which place I have to file as Registerd office is at  Azadpur, Delhi-33?



Learning

 2 Replies

adv. rajeev ( rajoo ) (practicing advocate)     10 December 2010

You will have to prove that the centre is for the earning of the dily l ivelihodd then only dispute lies with consumer court, otherwise for cheating except criminal proceedings there is no reamedy

Kanaksinh P.Boda (Educationist/Lawyer)     18 December 2010

I agree with Rajeevji.


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