How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Dimitry K., Esq. Your Own Question

Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 38789
Experience:  Run my own successful business/contract law practice.
18572087
Type Your Business Law Question Here...
Dimitry K., Esq. is online now
A new question is answered every 9 seconds

Contract with Holsum bakery to purchase our territory for bread

Customer Question

Contract with Holsum bakery to purchase our territory for bread sales. Flowers food purchased Holsum of Arizona. We are independent distributers for over 4 years. Was forced to serve chain stores for a loss for 2 to 3 years and was promised that our route will quadriple once they were going to purchase XXXXX XXXXX in California. We waited on good faith. We were told at least 12 times this last year to hang on hang on it's going to happen. We continued serving these stores. Now they bought official bought XXXXX XXXXX in California. We just had a meeting and was informed that we had 3 options. Not in writing only verbally. 1. Keep your routes the same in your territory. 2. We will buy your route at 13% and then they will resale back to us. 3. Just sale your route. Take number 1 and keep you will sale only Natures's own bread in your contract. But they can black ball us and make us lose business. Our route is hugh and we were going to expand ourselves in hiring route drivers because we were promised that we were going to quadtriple our business in sales of the XXXXX XXXXX Breads. No we lose everything and there disecting our routes and already have an add in the paper to hire distributors. We build these routes on our territory for them, that would have been worth 800,000.00. Now they will profit that and we get after we build the routes up clearing only 30,000.00 from the sale after taxes and paying our old route loan when we purchased only 5 years left AND if we want a job we have to buy a route back at 8% XXXXX XXXXX estimates and 13% for Natures Own. I feel the for 2 to 3 years we were lead to believe that we would get new business and that to keep servings these chain stores at a loss and that our routes will quadtriple in believing that they will purchase XXXXX XXXXX in California. They are giving us 1 week to make a decision as they
are disecting our territory and putting routes on sale. Do we have any rights.... on what they told us verbally to all of the drivers which is about 15 plus.....
Submitted: 2 years ago.
Category: Business Law
Expert:  Dimitry K., Esq. replied 2 years ago.
Thank you for your question.

I am terribly sorry to hear that you are in this situation. I am assuming that there was never anything in writing that would provide you with assurances or promises that those routes would be yours, correct?
Customer: replied 2 years ago.

We paid for our territory and still have a loan balance of $90,000.00. We purchased a hugh territory. They gave us 3 options. 1. Do nothing and keep our territory and only sale Nature's own etc. We would not be able to sell SaraLee.


 


2. They would buy us out at 13% and then we can buy our route back for 13% on Nature's own and 8% on SaraLee.


 


3. Just sell at 13%


 


We were verbally lied to and to all the distributors in CA. We started the businesses and routes in CA we build them and and now they finally came to CA and for years servings these stupid chain stores for them to keep business going. Now they bought saralee and now everything is changed. They had this planned for years, we are Independent Distributers and now they are trying to change our title so eventully if you go 1. we would be forced to sell under the name change.

Expert:  Dimitry K., Esq. replied 2 years ago.

Thank you for your follow-up.

My concern was whether or not they had promised these additional routes you in writing. If they not, then their oral assurances have no legal weight. Only if those promises were in writing and provided to your company could you potentially have a legitimate argument that the other party is somehow in violation. If those promises do not exist in writing, it is really hard to hold them liable to you. What you are angry about is a potential missed opportunity, and I agree that such an opportunity hurts. But it is ultimately an opportunity, not a legal entitlement or a contractual obligation. As a consequence I really do not see a legitimate argument here on your end against them where you can claim that they are in violation. I am sorry, truly, but ultimately since you are not employees but independent contractors, they can change the conditions or not grant you an option which was simply offered orally rather than in writing.

Good luck.

Customer: replied 2 years ago.

What about them forcing us to sell our territory back to them and then buying a route back. The taxes alone will hurt us and then we are in debt again. My husband is 57 yrs old and has maybe 5 yrs left in this type of business.

Expert:  Dimitry K., Esq. replied 2 years ago.

Thank you for your follow-up.

My apologies but technically this is not a forced sale. The reason I say that is because they are providing 3 separate options, only one of which requires a forced sale. There is always the option to 'do nothing', which I agree is not profitable, but does not generally create the requirement that sale take place. Plus you can always still negotiate terms with them also--just because they are giving you 3 options does not mean that those are the only options that you have.

Good luck.

Customer: replied 2 years ago.

One more, yes for right now, but they want us to sign a new contract. Either option 1 or 2. With this new contract they will be able to inforce sale I think because we won't be independent distributers they are giving us another name, so they would have a right to force sale Does this make sense. They had plan this for years and lied to yes for years. With this new contract would we be able to do some changes? Do we have a right.

Expert:  Dimitry K., Esq. replied 2 years ago.

Thank you for your follow-up.

It does make sense, they are attempting to turn you into a potential subsidiary (I am assuming that was their word) which would turn you into a part of their company but still a semi-independently functioning part. Please know that you always have a right to demand changes and the right to not sign. I also strongly suggest you obtain local counsel for yourselves because if you feel like the entity was not behaving honestly and openly with you, get EVERYTHING you want in writing and make sure that you are protected going forward.

Good luck.

Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 38789
Experience: Run my own successful business/contract law practice.
Dimitry K., Esq. and 8 other Business Law Specialists are ready to help you
Customer: replied 2 years ago.

Thanks!

Expert:  Dimitry K., Esq. replied 2 years ago.
You are most welcome, truly! I wish you folks the best!

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
< Last | Next >
  • Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises! Gary B. Edmond, OK
  • My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer. Eric Redwood City, CA
  • I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight. Michael Wichita, KS
  • PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent. Three H. Houston, TX
  • Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!! Elaine Atlanta, GA
  • It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem. Tony Apopka, FL
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
 
 
 

Meet The Experts:

 
 
 
  • Law Pro

    Attorney

    Satisfied Customers:

    1767
    20 years experience in business law - sole proprietor, partnership, and corporations
< Last | Next >
  • http://ww2.justanswer.com/uploads/LA/lawpro/2012-6-25_171315_PT206740s.64x64.jpg Law Pro's Avatar

    Law Pro

    Attorney

    Satisfied Customers:

    1767
    20 years experience in business law - sole proprietor, partnership, and corporations
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    1495
    Run my own successful business/contract law practice.
  • http://ww2.justanswer.com/uploads/DC/DCraneEsq/2012-8-14_14436_DCrane.64x64.jpg MShore Law's Avatar

    MShore Law

    Attorney

    Satisfied Customers:

    1233
    Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
  • http://ww2.justanswer.com/uploads/FL/FLAandNYLawyer/2012-1-27_14349_3Fotolia25855429M.64x64.jpg FiveStarLaw's Avatar

    FiveStarLaw

    Attorney

    Satisfied Customers:

    1174
    25 years of experience helping people like you.
  • http://ww2.justanswer.com/uploads/scottymacesq/2009-6-10_221523_small.jpg RGMacEsq's Avatar

    RGMacEsq

    Attorney

    Satisfied Customers:

    504
    Licensed Texas General Practice Attorney
  • http://ww2.justanswer.com/uploads/ohioatty/2009-1-22_185545_me.jpg J.Hazelbaker's Avatar

    J.Hazelbaker

    Attorney

    Satisfied Customers:

    393
    Experienced and trained in the area of business law.
  • http://ww2.justanswer.com/uploads/BA/barristerinky/2012-6-10_22423_office.64x64.jpg Barrister's Avatar

    Barrister

    Attorney

    Satisfied Customers:

    373
    14 years practicing attorney, MBA
 
 
 
Chat Now With A Business Lawyer
Dimitry K., Esq.
Dimitry K., Esq.
Attorney at Law
1504 Satisfied Customers
Run my own successful business/contract law practice.