2007 I bought a franchise Insurance agency with no books, I brought my own clients to this business. On year 2008 September they stopped paying my commision, rent, utilities as the contract was specified… they filed chapter 7 bankruptcy ..there is a bank in New York that has been sending me letters. I own this franchise to them and hire a lawyer to sue me, what can I do to defend myself. I need help please..this lawyer already sent me a subpoena and sent me to jail for three days.

A: One area to look at is whether the franchisor properly disclosed everything that is required in a Franchisor Disclosure Document, which is required by federal law. Determining whether the franchisor did what is required is a complicated legal issue. You may have regulatory and other rights.

If you are being threatened with legal action of some sort, it is important that you retain a lawyer as quickly as possible. You do not want deadlines to go by without taking action to protect yourself–otherwise a court may find against you on things that you haven’t even considered.

* This answer does not constitute legal advice. I am admitted in the State of Arizona only. This advice is based on general principles of law that may or may not relate to your specific situation. Facts and laws change and these possible changes will affect the advice provided here. You should not rely on this advice alone, and nothing in these communications creates an attorney-client relationship.

Brad Denton, Arizona Franchise Lawyer.
Re-posted from AVVO Legal Questions & Answers.