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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 114028
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I am considering buying a vending machine business. The

Customer Question

I am considering buying a vending machine business. The machines still have a wrap on them that is from a franchise. If I leave the wrap on the machines can I be sued personally even though I am an llc for using the vending machines that still have the franchise wrap displayed on them?
JA: Can you tell me what state the LLC is registered in?
Customer: TX
JA: Has anything been filed or reported?
Customer: No. I havent even purchased the company yet or filed for the LLC
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 5 months ago.
Category: Legal
Expert:  Law Educator, Esq. replied 5 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Are you part of the franchise? You mean they have the franchise logo and trademark name on them?
Customer: replied 5 months ago.
They do. Could my llc or me be sued?
Customer: replied 5 months ago.
No. I am not part of the franchise. They are used machines.
Expert:  Law Educator, Esq. replied 5 months ago.
Thank you for your reply.
If you are not part of the franchise and the machines are displaying the trademark/name of the franchise, you will need to remove the wrap. Displaying the wrap with their franchise on it would violate trademark law in that it creates a likelihood of confusion with the franchise and can lead people to believe you are part of that franchise. The franchise could also sue you for using their markings without their consent.
Customer: replied 5 months ago.
Not my question. My question was can I be sued personally or just the llc?
Expert:  Law Educator, Esq. replied 5 months ago.
Thank you for your reply.
If the machines are owned by the LLC, then just your LLC can be sued as you are protected by the corporate veil. However, there are rare cases where the corporate veil can be pierced for personal liability of the owners, such as if your LLC is not adequately funded or insured or if your LLC does not maintain proper corporate records or follow corporate formalities (It is rarely done, but you need to know it is possible).

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