Legal Question in Business Law in North Carolina

Living in VA but purchasing a Franchise in NC/Sales Contract

Both the buyer (myself) and the seller live in VA. I am purchasing his franchise that is located in NC. (So, I will be taking over his franchise and purchasing his agreement). Neither party has a broker. My next action is to submit a written offer with a price. I want to make the contract contigent upon the financial information that seller will release after the written offer is received. Also, this data will be used to secure a loan from the bank so I need to make the offer contigent on the securing of the ''sale funds.'' What type of contract do I need to use? Do I need to list exactly what is included in the sale? Should I include the fees at closing and the responsible financial party? Are their any key items I need to mention in this contract? Does this contract need to be notirized?

Thank you!


Asked on 2/06/06, 12:25 pm

1 Answer from Attorneys
Thomas Dunlap Dunlap, Grubb & Weaver

Re: Living in VA but purchasing a Franchise in NC/Sales Contract

I would get a lawyer, especially for due dilligence purposes. Usually the process begins with a letter of intent and mutual non-disclosure agreements. But againt this is very trick and I would not undertake buying anything of significant value that may come with debt and liability (UCC1s etc.) without an attorney. You also want to figure out if you are making a staock purchase or asset purchase (the latter is favored for buyers).

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Answered on 2/06/06, 12:42 pm


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