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Is it legal for a company to impose a loss making contract on a franchisee?

I am an owner driver ( i provide Lorry's and staff to a large retail company to do there deliveries and was paid per drop ) in Dec 11 we were told we had to become franchisee,s and that we would have to pay for the privilege of delivering in designated areas , with a projected average drop rate they would charge me a monthly fee, this was non negotable . since then they have amended the ( pre franchisee ) contract with amendments on a monthly basis and changed the rules again on a monthly basis with no consultation to the point were we arelosingg 7,000 a month ( on a turn over of 40,000 a month ). we have tried on numerouse occasions to address the matter but keep being fobbed off , to the point we are going bankrupt. Do we have any legal recourse. Please help.Our only costs are fixed and are legaly required.

1 Answer

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  • Bill
    Lv 7
    10 years ago
    Favorite Answer

    Your only recourse is to stop doing business with them and find a new account to take their place. Any contract you may have has been violated by all the changes. Good Luck

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