Legal Question in Business Law in Missouri

I was required to sign a Bill of Sale for my store by the corporate franchise HQ before they would process the transfer or process the internal loan they did for the buyer. On closing day the buyer did not have any money. When I called the Corp HQ they told be to sue him that I had already signed the Bill of Sale and it was not their problem. The buyer lost the store for not paying his bills.

They buyer never paid me and I ended up filing personal bankruptcy.

Do I have any recourse against the parent company that required me to sign the Bill of Sale without

getting paid first?


Asked on 8/26/10, 11:42 am

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

Any franchise attorney will tell you it depends on the specifics of the transaction. The transfer and sale of franchise rights are governed by the franchise agreement. In addition, the corporate franchisor has a duty to act in good faith. In this regard, the terms and conditions of the Bill of Sale must be carefully reviewed. Consult with a good franchise attorney for specific advice.

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

Franchise Attorney

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Answered on 9/01/10, 7:09 am


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