Legal Question in Business Law in Texas

I live in Texas. My husband is the owner of a C-Corporation and is the sole shareholder. The corporation is not community property. In 2009 he listed me as the Vice President (officer) and formed a DBA franchise under the corporation. He personally guaranteed a lease agreement as the President and owner of the corporation. I did not have any knowledge of the personal guarantee on the lease agreement. If the company goes bankrupt, do I have any personal liability for the remaining rent? (Or does the personal liability stop with him?) I did not sign the lease agreement.


Asked on 7/26/10, 5:25 pm

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

As a franchise attorney, my question is what do you mean by "formed a DBA franchise under the corporation?" If you did not sign as a personal guarantor on the lease, you should not have any personal liability. But the landlord may still sue you anyway, and you would have to deal with the lawsuit. This happens all the time. 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 7/27/10, 7:56 am


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