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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.
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.
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.
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.
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.
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.