Misrepresentation is unacceptable in today’s highly competitive and transparent corporate world. Misrepresentation can be described as providing information that is incomplete, inaccurate or misleading. It can either be intentional or unintentional. In the franchise sector, franchisees have often complained of misleading and deceptive conduct by the franchisor. Franchise companies have a sales pitch when they market their franchise, which might tip over the line of being a misrepresentation. During pre-sale meeting, the franchisor may state many things to encourage the franchisee to buy a franchise. If there is any untrue, incomplete or omission of information that induces the franchisee to buy the franchise and on account of that he suffers a loss, then as a result the franchisee can sue the franchisor for misrepresentation.
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