Legal Question in Business Law in California
Hi,
I used to own a reglazing business (refinishing bathtubs and showers) and have since gone out of business completely broke. My life has completely crumbled. An old customer is calling for repair as per the warranty. I want to honor it but have no means to. The franchisor that I purchased it from says I am liable even though I am no longer in business. Any ideas on this and/or advice?
Thank you, Ricardo
3 Answers from Attorneys
You could let the client know your company is out of business and there are no funds to honor the warranty. Then, if the customer sues, he can try to collect from you. Or, the customer might just decide that it's not worth it to go to court and pursue a judgment, and find a company of his choice to reglaze the tub. As a compromise, you might also tell him what materials you will need to do the job, have him purchase the materials, and you do the labor.
If you are out of business, it's difficult to see how the franchise company is insisting you honor the warranty. Perhaps it is their obligation. You should show the franchise agreement you signed to a franchise attorney and get advice.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
San Francisco Franchise Attorney
As long as this was a corporation, not a sole proprietorship where you would be personally liable, then the advice is that you can walk away and ignore the claims unless you are sued. Worry about it then. It's noble to want to help, but you're out of the picture. The homeowner loses is the bottom line.
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