Legal Question in Business Law in Florida

I have worked for a small restaurant for 15 years, helping write menus, handbooks, recipes, etc. along the way (all paid an hourly wage). I was very good friend with the owner/head of the franchise, and he had a restaurant that was failing. He sold the restaurant to me two years ago under the conditions that I would pay the old food bill, take over the small amount of bank loans, and take out a larger loan the have the place completely remodeled. We had a verbal agreement that I would be charged no franchise fees until the loans were paid off (3 1/2 to 4 years depending on the market market and how fast I would be able to pay them back. In the past 6 months, he has sold the entire franchise to a different party, making them aware of our agreement, which they also agreed to.

Now, some of their other franchises are in trouble and though we are making no profit and in trouble ourselves, we are not in as bad as shape as them. They contacted me today stating this and that they have made a business decision that I need to sign a franchise agreement with them, and start paying franchise fees as soon as possible. I understand their dilemma, but this will cause me to go out of business.

Do I have any options as all besides trying to sell the place or defaulting on my bank loan and closing down? Would like to stay in business, by we only do about $6000 in sales a week and the franchise fees would be about $375-400 a week. No way I can afford the extra money at this time. Help please!

N. Judkins

1 Answer from Attorneys

Related Questions & Answers

More Business Law questions and answers in Florida

Looking for something else?