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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 118809
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I presently own a restaurant which is under a business

Customer Question

I presently own a restaurant which is under a business licence to another corporation. The business licence is due for renewal October 2018 and I want to know where I stand if they refuse to renew the licence
JA: What state are you in? It matters because laws vary by location.
Customer: California
JA: Has anything been filed or reported?
Customer: In what way
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.
Can you better explain? What is your ownership interest in the company that owns the license? Why do they own the license?
Customer: replied 5 months ago.
It started off as a family business. My bother in law and wife own the controlling company K&J Vyse Inc and also own 20% of the shares in our company, Vyse Enterprises Inc. They gave us a business lease to operate as Annie's Cafe which is their brand for which we pay them a monthly fee.
Customer: replied 5 months ago.
Unfortunately, the relationship has not been plain sailing and I think they would like nothing better than to refuse to renew next year.
Expert:  Law Educator, Esq. replied 5 months ago.
Thank you for your reply.
If they only own the business license and they refuse to renew it, then your only recourse is getting your own business license and changing the name of the restaurant, since they own the brand name and you pay them the fee. You can go get your own business license though as one option.
Also, if they own 20% of the company, then them intentionally harming the business by not renewing the license would be grounds for you to sue them for damages for breach of their fiduciary duty to your company and you can seek damages from them including a court order to force them to renew the license. That is your other option.
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Customer: replied 5 months ago.
Maybe I have not explained it well, the business licence is actually a contract to operate as Annie's Cafe . They also own the lease on the building from which we operate
Expert:  Law Educator, Esq. replied 5 months ago.

Thank you for your reply.

If they are 20% owners of your business, they would still be in breach of fiduciary duty to your business as owners for doing anything that causes harm to your business. So the second part of my answer above applies, you would need to sue them for breach of fiduciary duty to your business for causing it financial harm in not renewing the Annies license.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page , as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.