Legal Question in Business Law in North Carolina

My brother & I opened a restaurant in Dec 2010. He is the owner in name only (business license, lease, etc). My parents & I financed the bulk of the upstart cost with the understanding that he would make the payments. (He could not get a loan due to his credit score.) I operate the business hands-on. I am there 6 days a week, approximately 75 hours. He is there, at the most, 10 hours a week. It is not working out for us, as far as a business relationship. His unprofessional behavior, lack of business sense, and various other annoyances are killing our business. He has not made one single payment to our parents for the loan they gave him. (They borrowed against their house.) My parents are also having to make the payments on my credit cards because we maxed them out for the restaurant. (Did I mention he has yet to pay me a salary?) I want him to go away and let me handle it myself. Do I (and my parents) have any legal options to remove him as owner?


Asked on 8/13/11, 7:46 pm

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

As a Franchise Attorney I can only say the following. Is there anything in writing about this venture? Things like promissory notes for the money financed, partnership agreement, etc. You will need to likely bring an action against your brother in court. Whether this is to dissolve the partnership or something else is yet to be determined. 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 8/14/11, 8:04 am


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