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my husband bought into a franchise 5yrs ago and its time to

Customer Question
my husband bought into a...
my husband bought into a franchise 5yrs ago and it's time to renew contract, but franchise called him 5pm fri mar.30th. to tell him they will not renew with him and he is to be out in 2 wks. and he is to leave all property he purchased from them to start this buisness!!!! can they do that keep his property? The franchise has been bleeding him drie of all profits, and now they want to take everything. He is in a military base and has givin excellent service, and has received high praise by his landlords and customers. What can he do, to at least hold them off for more time to consult with an attorney?
Submitted: 5 years ago.Category: Business Law
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4/2/2012
Business Lawyer: Lucy, Esq., Attorney replied 5 years ago
Lucy, Esq.
Lucy, Esq., Attorney
Category: Business Law
Satisfied Customers: 31,019
Experience: Attorney
Verified
Hi,

My name is Lucy and I'd be happy to answer your questions today.

Does the contract state that it will renew automatically, or that it will renew at the option of your husband? Also, does the contract say anything about who owns the equipment purchased to run the franchise?
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Customer reply replied 5 years ago
LUCY, how long do i have to waite for answer
Business Lawyer: Lucy, Esq., Attorney replied 5 years ago
If you can answer those questions that I posted for you, I should be able to get you an answer within a short time after I receive notification of your responses. Thank you for your patience.
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Customer reply replied 5 years ago

"For Lucy" Lucy there isn't an accept button to click on, would love to help how do I find the accept?

Business Lawyer: Lucy, Esq., Attorney replied 5 years ago
The reason there's no Accept button is that I haven't provided an Answer yet. You'll see it after an Answer is posted.

In order to assist you, I sent you a request for more information. If for some reason you weren't able to see it, here it is again:
Does the contract state that it will renew automatically, or that it will renew at the option of your husband? Also, does the contract say anything about who owns the equipment purchased to run the franchise?
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Customer reply replied 5 years ago
As far as the contract renewing my husband is not concerned about staying with the franchise, However he wants to pull his equipment from the site, He has a bill of sale with equipment list that he purchased. The Franchise is the one who is trying to keep everything so that they don't have to start from scratch, They are playing him durty and think that he can't afford a lawyer to help him in this matter? He spent hundreds of thousands of dollars to buy into this franchise only for them to rip him off anyway they can. He just wants what he paid for and nothing more.
Business Lawyer: Lucy, Esq., Attorney replied 5 years ago
Franchise agreements tend to be very long and very detailed. The reason I was asking what the agreement says is that it really does make a difference. Many of these agreements favor the company. It's entirely possible that there's a clause in the contract that requires your husband to return the equipment at the end of the agreement. Such a clause would be binding, so you'll need to read it carefully.

If there isn't anything in the contract that gives the company the right to the equipment, then he's allowed to keep it. He needs to make sure that he was actually purchasing it, and not just paying to lease it from the company. The contract will say.
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Customer reply replied 5 years ago
Do you have any idea where in the book of articles we could look!!! Like you said it is massive.
Business Lawyer: Lucy, Esq., Attorney replied 5 years ago
Since every franchise agreement is different, it's hard to say. If there's a table of contents, you can start by looking for something related to equipment. If there isn't, you can start by trying to skim the various heading titles for "Equipment" (usually, there are various headings in bold in different areas).

Another option is to tell them that you believe your husband is entitled to keep the equipment and ask them to point to a specific section of the agreement that says otherwise. But, you may have to actually sit down and read the whole thing.
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Customer reply replied 5 years ago
If there isn't anything in the contract, or the book as to who keeps equipment is there any document we can draw up and serve, stating entent to vacate with equipment?
Business Lawyer: Lucy, Esq., Attorney replied 5 years ago
You could just write them a letter, asserting your right to the equipment, or a general letter stating that you intend to vacate the premises on a certain date. I don't know if it'll help to notify them in advance that you plan to take the equipment - it could just encourage them to try to stop you.

If the franchiser owns the premises where the franchise is located, any equipment that is attached to the premises is legally called a "fixture." That means that it becomes part of the property, and the tenant cannot remove it. It's not clear whether that's the type of equipment you're talking about, but I wanted to mention it, just in case.
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Lucy, Esq.
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