Legal Question in Business Law in California

Breach of Contract?

In a prior marriage, my wife and her then husband, jointly owned, as equal partners in a California GP, eight (8) franchise fast food restaurants. During the interview and review process prior to becoming operational with their first franchise location, they both submitted to a background check that included credit, criminal, work history and other related criteria.

On each of the respective franchisee agreenents they were both listed and signed the agreement(s) under their individual signatures, with equal responsibility, according to the agreement(s), for all aspects of the franchise location(s)they jointly owned.

Next came an acrimonius divorce and a contested community property settlement that is still pending. It has now come to my wife's attention that her name has been removed from the prior eight (8) franchisee agreements which would indicate that the franchise company has amended the original agreements without her direct consent. The franchise company has made no attempt to contact her directly regarding approval of these changes and will only speak to her inquiries through their Corporate Legal Dept. Could this be a ''Material Breach of Contract'' and/or any other type of legal transgression?


Asked on 4/29/06, 2:12 pm

4 Answers from Attorneys
Matthew Mickelson Law Offices of Matthew C. Mickelson

Re: Breach of Contract?

It sounds like a troubling situation. You need a lawyer to begin the investigation process. If you're located in Southern California, please feel free to contact me.

Read more
Answered on 5/01/06, 1:22 pm
Terry A. Nelson Nelson & Lawless

Re: Breach of Contract?

It could be a lot of things, including compliance with a property settlement agreement and court orders. If she is sure the property was not part of the divorce settlement, then the question is WHY NOT? In any event, if it really is still her property she thinks, then she needs to have a consultation with an attorney to discuss all the facts and documents, to determine what can be done now. Feel free to contact me if interested in doing it right.

Read more
Answered on 4/30/06, 4:19 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Breach of Contract?

I assume your wife has legal representation in this acrimonious divorce, which also seems to involve a fairly substantial community estate. Therefore, I would guess you aren't satisfied that the attorney knows contract, partnership and franchise law very well, so you need to double-check his or her theories and adequacy of representation.

That isn't surprising; family law is a demanding specialty in its own right, and those who practice it full time may not always be up to par on other areas of law.

There's a rather strong whiff of fraud about this set of facts. One would have to read the franchise agreement and the partnership agreement to be sure, but generally this kind of unilateral removal of a contract party or a general partner of a partnership.

My first guess would be that primary blame will lie with the ex-husband, with the franchisor caught in the middle, possibly being negligent in allowing unauthorized changes to be processed. But this is only a guess.

I think I'd advise bringing in an attorney who works at least part time in the area of franchise law; make the files (partnership, divorce and franchise) available to him/her, and ask for an investigation and report. Expect to pay for six to eight hours' work, maybe more. It'll be worth it.

Read more
Answered on 4/29/06, 3:15 pm
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Breach of Contract?

Absolute fraud. Does she have copies of the agreement with her signature included? Call me directly at 16192223504.

Read more
Answered on 4/29/06, 5:25 pm


Related Questions & Answers

More Business Law questions and answers in California