Hello,I am a franchise owner, currently having my franchise…

Question

Hello, I am a franchise owner, currently having my franchise location
constructed. The landlord's agent is claiming that they are required by law to
wait for the entire period specified in the Builder's Lien Act in order to pay
me the Tenant Improvement Allowance which is stated in my Lease Agreement. Is
this true? I have taken to steps to ensure that my contractor and ALL of his
subtrades sign a statutory declaration swearing that there will be no liens
placed or claims made. Thank you.

Debra · Accepted Answer

Debra Thal (username) :

No

Debra Thal (username) :

They are required to hold back a certain percentage for the subtrades or else
they can be personally liable but would not be the while amount and it's not
where there is no risk of them being sued or liens being registered.

Debra Thal (username) :

I bet they don't have the money.

Debra Thal (username) :

How many more days are they saying they have to wait?

Customer:

They are saying that they have to wait for two months after my construction is
completed

Customer:

My lawyer had suggested that they hold back a percentage of the tenant
improvement allowance but they refused.

Customer:

I have suggested (today) that they hold back 25% in case of a lien (which there
will not be!) and give me the rest so that my business can survive past the
first month

Customer:

Are you there?

Debra Thal (username) :

Yes but the site said you were still typing.

Debra Thal (username) :

What province is this?

Customer:

sorry

Customer:

BC

Debra Thal (username) :

I don't even see where the two months comes from. I think it's 45 days.

Debra Thal (username) :

But they cannot hold back the full amount from you.

Customer:

Yes, that is what I read too.,

Debra Thal (username) :

I think your should threaten a lawsuit and demand interest as well.

Customer:

My franchisor has, for the most part, failed in supporting me.

Debra Thal (username) :

They seem to think they make up the rules which is never a good thing,

Debra Thal (username) :

How much money is involved?

Customer:

The franchisor said that the property manager (landlord) had informed them that
I would not have to wait longer than 2-3 weeks

Customer:

The amount is $32,200. Without which I will not make it financially and may be
bankrupt

Debra Thal (username) :

The landlord is dishonest.

Customer:

I am now onto my second round of financing because of having to pay mych higher
costs than the franchise lead me to believe...

Debra Thal (username) :

Your lawyer should write them now putting them on notice that the damages may be
irreparable and you will be seeking full compensation if you lose you business.

Debra Thal (username) :

This is horrendous.

Debra Thal (username) :

What does your lawyer think about bring an emergency application to Court?

Customer:

...so I am borrowing even more money for increased construction costs PLUS the
fact that the franchisor spent 8 onths negotiating the lease. During part of
this time (5 months) I paid out what I had saved for construction costs

Customer:

I may have to apply to the court and have mentioned it

Customer:

I have exhausted funds for the construction and my first month's operating
costs, based on getting assurances that I would receive the allowance in 2-3
weeks. I am borrowing more but I will not survive past the one month mark

Customer:

I have contacted my lawyer today and am still waiting to hear what course of
action is available

Debra Thal (username) :

I think you may not have a choice but to start to go to Court but my guess is
the landlord will back down and offer to pay most of it.

Customer:

Thanks, XXXXX XXXXX mention the 'emergency application' to him

Debra Thal (username) :

I would call your lawyer again in the morning and make it clear that you will
lose the business if this is not rectified immediately

Customer:

ok

Customer:

do I have a solid case, do you think?

Customer:

I have even asked my general contractor to swear a statutory declaration stating
there will be no liens. He will do this as part of our contract. It will even
have EVERY signature of every subcontractor in it

Debra Thal (username) :

I think you have a solid case.

Debra Thal (username) :

And I think the landlord doesn't have the money so is making up lies.

Customer:

Thank you.

Customer:

I thought something was up

Customer:

Ok, if that is what you recommend, I will pursue it tomorrow. Can I also sue for
damages?

Customer:

That is my last question

Customer:

ie, lost revenue past, present and future

Debra Thal (username) :

You can sue for damages if you incur them and so if this is not resolved then
yes you can.

Debra Thal (username) :

That is why I am suggesting the lawyer threaten with.

Customer:

ok, thank you very much for your time.

Debra Thal (username) :

You are very welcome

Customer:

I really appreciate your help

Debra Thal (username) :

I wish I could help more but I am glad it was useful

Debra Thal (username) :

If we are done please click accept.

This authorizes the site to release my portion of what you paid them to me.

Hello,I am a franchise owner, currently having my franchise…

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