The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
What happens if my franchise doesn’t perform as expected?
John Pratt writes:
First, you have to work out who is responsible for the poor performance because if it’s not attributable to the franchisor, a disappointed franchisee will not have a claim.
The issue of performance normally arises in the context of franchisees being given information by a franchisor to encourage them to enter into the franchise agreement.
Often, franchisors provide cash flow forecasts and projections that set out initial start-up costs and likely turnover and profitability. If those levels are not achieved, the franchisor may have done nothing wrong because projections are simply projections and not guarantees.
If, however, the projections provided were not based on the average performance of franchisees and paint far too rosy a picture of the franchise, then almost certainly they will constitute misrepresentations and would be likely to be fraudulent misrepresentations, which generally franchisors cannot protect themselves against with a provision in the franchise agreement.
In other words, if things don’t work out as well as a franchisee would hope and providing the poor performance is not attributable to them and it falls far short of the projections provided, which were not based on the average performance of franchisees, a franchisee may well have a claim against the franchisor.
John Pratt is senior partner at specialist franchise firm Hamilton Pratt and has advised franchisors for over 25 years.
You might also be interested in

Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more

Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more

Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more

Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Exciting Franchise Opportunities

Start your own ActionCOACH UK franchise
Yes
Find Out MoreThis would be discussed at interview...

Request Free Information
Send a free enquiry to ActionCOACH UK for further information!

Start your own Numi Scan franchise
Yes
Find Out MoreReturn of initial investment and an...

Request Free Information
Send a free enquiry to Numi Scan for further information!

Start your own The Pantry Cafe & Restaurant franchise
Yes
Find Out More£1,500,000

Request Free Information
Send a free enquiry to The Pantry Cafe & Restaurant for further information!

Start your own Actors Cast International Franchise franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Actors Cast International Franchise for further information!

Start your own Blossom Home Care franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Blossom Home Care for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
50 franchise brands with training programmes in 2025
Added 4 months ago | 2 min read
-
Franchise funding: How to beat the banks
Added 3 days ago | 2 min read
-
Franchise agreements: How to navigate territory rights
Added 3 weeks ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Under 50k
If you have experience and more to invest
Click here -
Over 50k
If budget is not an issue, then don't miss these
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
COPYRIGHT © 2025 ARTICHOKE MEDIA LTD Registered in England and Wales No 14769147 Registered Office Address: Jubilee House, 92 Lincoln Road, Peterborough, PE1 2SN
With the publication of Getting Started in Franchising, What-Franchise.com is not offering legal, financial or any other professional advice or endorsements. Readers are encouraged to seek advice from professionals in specialised fields before acting on any information published herein. The views and opinions expressed in Getting Started in Franchising are those of the author(s) and do not necessarily reflect the views and opinions of What-Franchise.com members or staff.
What Franchise Newsletter
Keep up to date with all the industry news