Legal Question in Business Law in Texas

I have two locations as medical clinic in houston, one lease period left 2 years out of 5 and other recently started 4 months ago and lease is for 3 years then extended again for next three years after a little difference in rent. My business is under distress and I am not able to pay the rent and bear expanses, If I break the lease what are the consequences. Personally I have a house in which our family lives and 2 cars (one is on finance monthly payment.) What are my options if I try hard and not able to sell the practice.


Asked on 5/27/11, 3:39 pm

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

As a Franchise Attorney I can't really say without seeing the leases you signed. If they are signed in a personal capacity, or sole proprietorship, you are personally on the hook for the rent for the balance of the terms. Of course, the landlord has a duty to use best efforts to rent to someone else. But until that happens, or you reach some other written understanding with your landlord, that's the story. 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 5/28/11, 6:52 am


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