I have kind of a business arrangement / franchise potential
Hi... I have kind of a business arrangement / franchise potential question. Where I am the franchisor.I have a small chiropractic business I am expanding. I have a guy that is struggling in practice. He is a good chiropractor and great guy but just not business savvy and I have the opportunity to kind of partner up with him (bail him out so to speak) by helping him get his business going by converting it to a franchise location for me or partnering up with him in some way.Advantage to him is he can break even or make money quickly to support family, etc. using my model (well in theory). He is bleeding about 1k a month right now and has been at it 1.5 years with just a 3k month overhead so he aint exactly growing too quickly.Advantage to me is that I can add another location to my company fairly quickly/easily (be our 3rd) in an area I would love to have a location with a doc ready to go... so that is my drive to make this happen.So the question is this. If I move forward with this, I am struggling on ideas of how to arrange the 'deal' with him.Not sure I want to take over his lease for him (1.5 years remaining) because he could of course abandon ship. Could just add my name on to lease and take over his operations and hire and train him. That seems clean only because he is still on hook for lease but why do that if don't have to be on it is my struggle there.Next option I thought is have him sign on as franchisee and just add addendum for no Franchise Fee, No royalties, etc and maybe just defer it all along with paying back any money I spend to get this going (be about $15K initially most likely to get him up to speed and hit marketing hard for several months)I have come up with scenarios and typed them out but didnt want to attach here because feel like it will be too overwhelming to read my potentially terrible scenarios.So my question is... Can you give me some ideas on a way to employ or partner with a guy in a situation like this where it makes the most sense.Perhaps some partnership hybrid where he can't abandon ship if all is not going well. So maybe he stays on lease and we just have an agreement with him that we take over his finances of the office and hire him as 1099 for low wage plus percentage as turns profit.Or perhaps a modified franchise option as mentioned above with a loan to get him going and he starts implementing my systems. Starts paying an amount per month towards these things on a profit level reached.Anyway.. hope this is a reasonable question you can give me some insight on.While I will probably consult an attorney in my area I like checking with this service as well so I can get an affordable second opinion and maybe just ideas of creative fair ways to structure it but most importantly any pitfalls to watch out for that I would not see coming or know about.
Counselor at Law
We recently formed an LLC in the month of June 2016 in
Hello All, We recently formed an LLC in the month of June 2016 in California and I received EIN# ***** well from the IRS mentioning that we must file the form 1065 on 04/15/2017, I wanted to know two things from the Tax experts and business Attorneys here in reference to the information received from IRS, the questions are as follows 1. Based on the IRS info should i consider the LLC tax year (Fiscal year) has been chosen automatically by the IRS as 01/01/2016 to 12/31/2016 and for the same i should submit the income tax returns in 04/15/2017 let me know if im wrong, also if the Fiscal year has been chosen automatically by the IRS as 01/01/2016 to 12/31/2016 like i said above what if i choose the LLC to be taxed as "C" corp now i mean in the month of August 2016, will this have any effect to the automatic fiscal year 01/01/2016 to 12/31/2016 election by IRS? I mean will they change the fiscal year? 2. should i also submit the returns to California tax board and pay $800 franchise tax as well for this calendar year ( 01/01/2016 to 12/31/2016 ) even though the LLC was formed in June 2016?
Am I going to be charged questions? I have a nonprofit
Am I going to be charged for the questions?I have a nonprofit science workshop running for the last 10 years. I charge the students to cover the materials and the space a pay the teachers help. The income is below 50000.Expenses are higher . I substitute some money'sNow I am into 74 years getting tired. The program is useful for kids ranging from 1-12.Some commercial people are asking me to have a partnership with themWhat does it mean.?should I proceed or not.reasons to proceed is if some money's come from partnerships ,I can hire a manager to continue the science workshop.My workshop web is www. Irvingartofscience.org
I am responding to a civil complaint revolving around a
Hello. I am responding to a civil complaint revolving around a breach of franchise agreement. I would like to assert a Misrepresentation by the Plaintiff on account of their claim of having 170+ locations. In reality it is closer to 80 locations, as several years back many of the franchisees withdrew from the corporation. That withdrawal resulted in a rather large lawsuit that I am considering referencing in my response. But, technically, those franchisees lost said case. Am I correct in assuming it would be unwise for me to reference a case in which the losing side and I have the same breach in common?
I need help understanding "Res Judicata/Collateral
I need help understanding "Res Judicata/Collateral Estoppel".I am involved in a civil case in which I am being sued for breach of a franchise contract. The plaintiff has thus far only demanded a monetary judgement of $220K. But, has made it know to me that they intend and expect to take possession of my business.In a previous case, in which a very large numbers of franchisee's withdrew from the company, as I have, only a monetary judgement was passed. Would the Res Judicata/Collateral Estoppel prevent something like a cease and desist from being issued?
I am in the midst of a civil lawsuit, in which I am being
Hello,I am in the midst of a civil lawsuit, in which I am being sued for breach of franchise contract. One of the things I want to bring to the forefront of the case is the poor character of the plaintiff.I have knowledge of an assault that took place at the hands of the franchiser/plaintiff, but I highly doubt that the victim would testify, out of fear of the repercussions. The victim is another franchisee under contract with the franchiser. What assurance could be given that he would be safe in giving a statement?
We are a Francise owner in Connecticut. Our franchisor has
We are a Francise owner in Connecticut. Our franchisor has an infringement policy that states you can't sell in another franchisees territory. After 2 infringement violations, you lose your franchise. We just won a complaint against a neighboring franchisee & have since found more instances where they have made sizeable sales in our territory. She just all of a sudden sold her franchise to someone else & corporate says we have no rights now that she no longer is the owner of the franchise. They say the new franchise owner is not responsible. Is there anything we can do to get some compensation from the sales she has made in our territory? Can we sue her?JA: Because laws vary from place to place, can you tell me what state this is in?Customer: ConnecticutJA: Have you talked to a lawyer yet?Customer: NoJA: Anything else you think the lawyer should know?Customer: We can get proof that she did business in our territory. And there are other franchise owners that think she has done business in their territories.JA: OK. Got it. I'm sending you to a secure page on JustAnswer so you can place the $5 fully-refundable deposit now. While you're filling out that form, I'll tell the Corporate Lawyer about your situation and then connect you two.