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My name is XXXXX XXXXX my goal is to provide you with excellent service today. I am sorry to hear of your difficult situation. Before I can give you an accurate answer to your question, please provide the following additional information:
With regard to this new dance wear store that your in-laws intend to open, would they be breaching some agreement with you by opening the store? On what basis would you assert an ownership interest in that new business (20%)?
I look forward to assisting you as soon as I have received this information. Thank you.
The current store we have now is called La Pointe (LP) and the new one
The dance wear Shoppe (TDWS).
They expect me to close LP (Even though that part of the business is profitable) so that they can keep the accounts with the vendors. If I move the store and keep it running, they will not be able to have the accounts, since the vendors only open a few in each area, and have to be at least 20+ miles away from each other. I could, if I wanted, move LP to another facility and keep it going, but that would mess them up.
I do have 20% ownership in the online dancewear store. It is in our signed agreements, so they would be in breech, unless they close the online store and re-open under a new entity. (Which I think they want to do)
That depends what we value the online store as, but currently, I would think no.
OK, that is what I had originally believed based on the information you provided. Given that, the in-laws could cause you a great deal of legal trouble, cause you to incur substantial expense and potentially ruin your credit rating since it does appear you are in breach of the contract.Because of the potential for this, it would typically be best to agree to be released from the balance of the loans they made to you in return for the demands they have made.I certainly understand the emotional and psychological impact such a decision must have on you, but it does sound like a reasonable offer, which you would probably be wise to accept. If they intended to do so, they could keep your business interests tied up in litigation for a prolonged period of time, causing a great deal of stress and additional cost, so I would typically cut my losses at this point and move forward with something more positive.It would be best for you to have any documents they present to you reviewed by a local attorney to ensure they cannot later claim you are obligated on the loans for some reason or otherwise interfere with your future business ventures.
I hope this helps clarify the situation for you. I wish you all the best in the future! Please remember to rate my service once you have all the information you need. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!
Do you think I am morally obligated to still pay them their investment back if I do give them 100% ownership?
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