Legal Question in Business Law in Florida

I own a small business and recently my largest customer decided to use a different supplier for the services I provide. I was informed to forward all equipment to the new supplier, which I did a week ago. Yesterday I was informed that somone from a regional office will be by in two weeks to make sure I have no equipment that belongs to their company. My question is: Do I have t let them into my business to do this or can I legally refuse? This is a rather large company and my company is small. Because they have seriously hurt my business I am inclined to not let them in, even though I have no reason not to. It seems they want to bully me. Or at best, can I make it on my terms not theirs. They want to dictate to me what I have to do or not do. I do not have a contract with them either.


Asked on 11/24/10, 11:16 am

2 Answers from Attorneys

Thomas Shigo The Shigo Law Firm, P.A.

Since you do not have a written contract with them, you can refuse entry to them (or their agents or anyone else for that matter). While it may be initially satisfying to tell them to "get lost" when they show up at your door, that action is shortsighted and may invite legal actions if they believe that all of their property was not returned.

Your intuition on changing the terms of the business severance is correct. You must be proactive. I can envision that a company would claim that you did not return some equipment as part of their "equipment replacement strategy".

At the very least you must send them a certified letter return receipt requested (or some other method to prove delivery - no email, no telpehone call, no fax) with a detailed listing of each and every piece of equipment that your business was provided (or was procured on their behalf) as well as a lising of each piece of equipment returned (including date of return and method used). The letter should also request a written reply to confirm your lists or request a written response detailing all claimed discrepancies. Then politely let them know that you would be happy to schedule a meeting with their representative after they have provided the requested written response. Then and without knowing more about the specific circumstances I would not be inclined to permit a site inspection without receiving thier response. If they agree with your list there is no reason for the site inspection. It they don't agree and provide specifics then you can be better prepared to make a decision as to whether to permit entry and the terms of such inspection and whether you may wish to have an attorney present. It is also a good idea to have an attorney draft or review this letter before it is sent because you will be able to give more background information and facts to help avoid further complications from this business relationship.

Look, I do not like to burn bridges unless necessary. I can see how you could use an on site meeting to gain information as to how and why the desicion was made and also learn specific details of your performance deficiencies to allow you to correct them for this and other customers. If you do this and keep in contact with them you might be able to win the business back --- if you still want it.

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Answered on 11/29/10, 12:44 pm
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney involved with the intricacies of franchise relationships that head south, I agree 100% with what the other attorney advises. Hopefully you have a complete list of the equipment your were provided initially, as well as a list of what you sent back. Letting them in is at your discretion, but should be on your time line, not theirs. 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 11/29/10, 2:50 pm


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