Legal Question in Business Law in Arkansas

I have closed my business - I called to cancel / close out my merchant account (for having a credit card machine in my establishment) and I was told I could not cancel/close without paying $1,045.00. They say that is because I signed a contract and they rely on that money. Is there some kind of law that protects a person in this case? I don't need the machine any longer and am willing to send it all back. Them keep answering with " find somebody to take over..."

Any suggestions?


Asked on 2/24/11, 1:41 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say you probably have 3 options. One, file for bankruptcy and discharge this and all other debts. Two, find someone to take over your account as they suggest. Three, pay the cancellation fee (or a lesser amount that you negotiate with them). Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 2/24/11, 4:54 pm


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