What is a franchise?
A franchise is a commercial contract where a merchant, called the “franchisor,” grants another merchant, called the “franchisee,” the right to use certain intangible rights (such as a trade name, trademarks, licences). In exchange, the franchisee generally pays a percentage of their turnover or profits to the franchisor. Examples include major fast-food chains, which are often franchised restaurants.
This contract also requires the franchisor to share their technical expertise, commercial or industrial methods, and advertising campaigns with the franchisee, ensuring a certain level of uniformity and quality within the franchise.
Who has the Right to Conduct an Investigation to Control a Franchise?
Both the franchisee and the franchisor can hire a private detective to verify compliance with the terms of the franchise agreement. This step is often taken to ensure that contractual obligations are being met on both sides.
What are the Possible Interventions of a Detective in a Franchise Control Case?
A private detective employs various techniques based on the specific needs of the client:
- Field Investigations: Surveillance, shadowing, and collecting testimonies.
- Administrative Investigations: Verification of documents and the franchisee’s administrative practices.
- Evidence Collection: The evidence obtained is legal and can be presented in court.
Franchisor: Why Hire a Private Detective to Prove the Bad Faith of a Franchisee?
Hiring a private detective allows the collection of tangible evidence of the franchisee’s bad faith or non-compliance with contractual obligations. This evidence can be crucial in asserting rights before the Commercial Court and demonstrating non-compliance with the franchise agreement terms.
Concrete Examples:
- Case 1: A franchisee uses unauthorised products, thus violating the terms of the contract.
- Case 2: A franchisee fails to meet the service and quality standards imposed by the franchisor.
Franchisee: Why Hire a Private Detective to Prove the Bad Faith of the Franchisor?
Franchisees can also face issues of bad faith from the franchisor. In some cases, the franchisor may fail to meet their contractual obligations, such as providing technical support, training, or promised advertising campaigns. Hiring a private detective can help:
- Collect Evidence of Non-Compliance: The detective can document the franchisor’s failures to meet contract terms, such as lack of technical support or training.
- Identify Unfair Practices: The detective can uncover if the franchisor unjustly favors other franchisees or engages in deceptive business practices.
- Strengthen Legal Action: The evidence collected by the detective can be used to support legal action against the franchisor, to seek compensation, or to negotiate better contractual terms.
Concrete Examples:
- Case 1: A franchisor fails to provide the promised marketing support, affecting the franchisee’s sales.
- Case 2: A franchisor grants exclusive advantages to certain franchisees, creating unfair competition within the network.
How Much Does a Detective's Intervention in a Franchisee Control Cost?
The cost of an investigation varies depending on the complexity of the case and the specific needs of the client. To obtain a precise and detailed quote, we recommend contacting Anthony CAUDAL, director of Agora Detectives. Our quotes are free and tailored to each particular situation (see “Rates“).