One of my sons (who operates in a number of other industries that have zero to do with this) purchased a home care franchise two years ago.
Has built a decent customer base but it is simply not worth the time he has to allocate each week to it (opportunity cost as he is in the initial stages of opening another location for one of his pre-existing businesses - non home care related).
He would prefer to eat the franchise cost, write it off, transfer clients elsewhere and use his time to do other things that he knows much much better.
His issue is - he signed a seven year contract with the franchisor. There are five years left. The contract is beteween the franchisor and an LLC S Corp elected business owned 100% by him and his wife (they were not married when contract was signed). He did not sign any sort of personal/individual guarantee. Per contract the LLC owes a minimum royalty. Obviously HE does not want to pay this if he dissolves the LLC. Thoughts? Or pm me if you are a lawyer that can help. He'll put up whatever retainer required. Wants someone he can trust so I offered to post on TexAgs for him. Thanks in advance.
Has built a decent customer base but it is simply not worth the time he has to allocate each week to it (opportunity cost as he is in the initial stages of opening another location for one of his pre-existing businesses - non home care related).
He would prefer to eat the franchise cost, write it off, transfer clients elsewhere and use his time to do other things that he knows much much better.
His issue is - he signed a seven year contract with the franchisor. There are five years left. The contract is beteween the franchisor and an LLC S Corp elected business owned 100% by him and his wife (they were not married when contract was signed). He did not sign any sort of personal/individual guarantee. Per contract the LLC owes a minimum royalty. Obviously HE does not want to pay this if he dissolves the LLC. Thoughts? Or pm me if you are a lawyer that can help. He'll put up whatever retainer required. Wants someone he can trust so I offered to post on TexAgs for him. Thanks in advance.