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Started By
Message
OT lawyers/legal people, I have a question concerning franchises
Posted on 11/11/14 at 8:03 pm
Posted on 11/11/14 at 8:03 pm
My boss operates a franchise in town but also operates his own business inside of the franchise and splits all incoming sales, 70 percent going to his private thing and 30 percent going to the franchise. My question is...is this legal?
This post was edited on 11/11/14 at 8:11 pm
11
Posted on 11/11/14 at 8:04 pm to CHSvideoman
Brother, even the dumbest lawyer alive wouldn't touch that question.
Posted on 11/11/14 at 8:05 pm to CHSvideoman
Why wouldn't it be? If he's a franchisee, I imagine he's contractually obligated to fulfill certain criteria of the franchise, otherwise he'd lose his status to operate as such, right?
Posted on 11/11/14 at 8:06 pm to CHSvideoman
paging southernelite...
Posted on 11/11/14 at 8:07 pm to CHSvideoman
Depends on his contract with the franchise. Without knowing any details, its impossible to tell.
Posted on 11/11/14 at 8:07 pm to CHSvideoman
I would want to see the License Agreement/Franchise Agreement to start.
Posted on 11/11/14 at 8:10 pm to southernelite
That seems reasonable. Though i know he and corporate do not get along at all. Which makes me think he enjoys secretly sticking it to them by giving them only 30% of the possible sales.
Posted on 11/11/14 at 8:12 pm to CHSvideoman
What franchise is this?
Posted on 11/11/14 at 8:14 pm to CHSvideoman
quote:
giving them only 30% of the possible GROSS sales.
This post was edited on 11/11/14 at 8:15 pm
Posted on 11/11/14 at 8:17 pm to SippyCup
So you're saying I should have put 'OT economists' in the title too? 
This post was edited on 11/11/14 at 8:18 pm
Posted on 11/11/14 at 8:18 pm to CHSvideoman
If they know about it and aren't pursuing legal action, then its probably legal.
Posted on 11/11/14 at 8:19 pm to southernelite
That's the thing, I'm not sure if corporate knows. This boss recently took over the franchise and in that time launched his company after that.
Posted on 11/11/14 at 8:19 pm to CHSvideoman
This is complicated legal stuff. Gonna cost a bundle.
Posted on 11/11/14 at 8:23 pm to Traffic Circle
franchisor takes a % of sales. if he's hiding revenue its a breach of contract. not criminal but could be civilly liable
This post was edited on 11/11/14 at 8:23 pm
Posted on 11/11/14 at 8:28 pm to CHSvideoman
Assuming this is private company then there is no issue.
Posted on 11/11/14 at 8:29 pm to SabiDojo
quote:
Brother, even the dumbest lawyer alive wouldn't touch that question.
Why not? it's simple enough. It's legal unless the franchise agreement says differently...
Posted on 11/11/14 at 8:31 pm to CHSvideoman
You already know the answer to your question. Would your boss be ok with you bringing in some of your on merchandise to sell to his customers. Also if you did this without his knowledge, would he be fine with it if he found out. No way and you would be fired on the spot.
Posted on 11/11/14 at 8:33 pm to TIGER2
quote:
You already know the answer to your question. Would your boss be ok with you bringing in some of your on merchandise to sell to his customers. Also if you did this without his knowledge, would he be fine with it if he found out. No way and you would be fired on the spot.
I hope you didn't pay for a law school education.
Posted on 11/11/14 at 8:37 pm to CHSvideoman
So what I'm getting out of this is your boss is turning tricks out the back of a Hardee's. That, sir, is illegal.
Posted on 11/11/14 at 8:44 pm to TigerGman
quote:
I hope you didn't pay for a law school education.
You are correct in assuming I 'am not a lawyer, School of hard knocks here. If you are suggesting that there is a franchise that will split customers 30\70 I would like to hear about it.
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