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It sounds like you and your boss had an oral contract, but not a written one. In most states, oral contracts are enforceable if they do not violate the statute of frauds in that state. In Ohio (I am not licensed in Kentucky where you are located; you will have to find out the Kentucky law on this matter of statute of frauds), a contract is enforceable even though it is not in writing UNLESS it will be performed in more than one year, or it is for the sale of real estate. In your case, it appears that your contract to purchase a franchise was not able to be performed in less than one year, so the oral contract may not be enforceable.
Another problem with oral contracts is that there are terms not stated in the original understanding, so it is not clear exactly what was promised. For example, in your situation, was there a promise that you would open the next granted franchise? Or just that you would be able to open a franchise, at some time? Was any time limit expressed?
There are ways to enforce a contract that may be voidable because of statute of frauds issues if partial performance has begun. It appears that you changed your employment in reliance on your boss's promise to grant you a franchise, and therefore you performed part of your part of the bargain. This doctrine is also called justifiable detrimental reliance. You relied on your boss's promise.
There are several theories available to you to permit you to recover damages or to obtain a franchise in a lawsuit against the company, or against your boss. You must consult an attorney to represent you and to determine after hearing all the facts of your case whether you can succeed in a lawsuit to obtain what you want - a franchise agreement with the company.
In addition to contract questions, in the sale of a franchise, a prospective franchisee must be given a Franchise Disclosure Document that complies with federal franchise law. If your employer is not complying with federal franchise law, then any franchise your employer grants is subject to rescission by the franchisee and in addition, your employer may be opening itself up to violations of state law in the sale of its franchises.
I am an attorney licensed to practice law in the state of Ohio. I am not licensed in the Commonwealth of Kentucky or any other state. This answer is intended to give general legal information and is not intended to give legal advice on your specific situation. More information would be needed in order to advise you on your specific situation. No attorney client relationship is established by my answer to your question....
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It sounds like you and your boss had an oral contract, but not a written one. In most states, oral contracts are enforceable if they do not...
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