Franchise specialist attorney, can I claim damages if the headquarters provided exaggerated information?

Yes, damages claims may be possible.

According to the Franchise Business Act, when a franchise contract is concluded based on false or exaggerated information provided by the franchise headquarters (franchisor), damages can be claimed.

In this case, the franchisee can determine the amount of damages for "operating losses" and claim it against the franchise headquarters.

This is because the franchise headquarters has the obligation to calculate expected revenue situations based on objective and accurate evidence and convey them to franchisees under the Franchise Business Act.

If the franchise headquarters arbitrarily manipulated, exaggerated, or reduced expected sales, this is a clear violation of the Franchise Business Act.

However, when this issue leads to a lawsuit, you must thoroughly prove that the headquarters' materials were exaggerated, so above all, securing materials is important.

In addition, since you must also prove that the headquarters' false or exaggerated information has a causal relationship with the franchisee's actual operating losses, precise argumentation is essential.

Therefore, if you are experiencing this kind of issue, it is good to receive help from a franchise specialist attorney with expertise in the relevant field.