Legal Question in Wills and Trusts in Virginia
My Rights: Inheriting 1/3 of a family owned business
My parents own and operate a profitable franchise in VA. Presently, they run the franchise and have a Manager (employee) who they would like to give 1/3 ''ownership'' of the business to after they die. The other 1/3 will go to my brother and the other 1/3 to me. This will be outlined in my parents' will. Although the Manager is a lovely woman and is knowledgeable about this particular business, my parents have only known her for @ 3 years. I am concerned about what my rights, and The Manager's will be when we inherit the business in say 4+ years from now. Since the manager is presently working in the franchise and has been for about 7 years, would she be perceived in court to be more of a ''rightful'' owner of the franchise than me and/or my brother? Please advise as to what all parties are entitled to specifically how we should be protected in the event that we all (the 3 of us) don't see ''eye to eye'' in the future about the business, the management of it, and the ownership of it.
1 Answer from Attorneys
Re: My Rights: Inheriting 1/3 of a family owned business
It depends on how the franchise is structured. If it's a corporation, and you and your brother own more than 50% of the stock, the two of you can call the shots, within some very broad limits. (So could your brother and the employee, or you and the employee.)
If the business is a partnership -- not likely-- a partner who doesn't like how things are going can dissolve the partnership, even a minority interest partner.
There could also be some impact on joint ownership contained in the franchise agreements; is one person likely to be the only one with whom the franchisor would be willing to deal, and is the appointment of that person up to the owners or to the franchisor?
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