purchase losing franchise while rec unemployment

[justchillin77]

What is the name of your state (only U.S. law)? california
husband and i borrowed money to purchase franchise in 2010 from a private seller. Was on umemployment at the time. Business never made a dime, lost thousands each month for three months in a row. Owe franchise 18K so they took the franchise back and now want loss of revenue from us too. Someone told me I might be in trouble since I was collecting unemployment during this time. Can you offer any input?

 

[CourtClerk]

Did you report to EDD that you were working?

Were you still ACTIVELY seeking employment?

 

[justchillin77]

No I did not report it because I was not making any money and yes I continued to look for work every day since then.

 

[justalayman]

Not since then, while you were working this franchise. If you did not look for work while working there, you were not eligible for UI while you worked there.

It's not just making money. You have to be ready, willing, and able to accept employment as well as actively looking for it.

 

[justchillin77]

I have repeatedly said I was looking for work and I purchased this business with my husband. I have interviewed for jobs but nothing materialized. I am still looking for work now. Am I going to need a tax lawyer to help me with this issue?

 

[justalayman]

I have repeatedly said I was looking for work and I purchased this business with my husband. I have interviewed for jobs but nothing materialized. I am still looking for work now. Am I going to need a tax lawyer to help me with this issue?

You didn't say here, repeatedly, that you were looking for work. In fact, the only thing you did say, in my interpretation, said you were not looking for work while you were trying to run this franchise.

No I did not report it because I was not making any money and yes I continued to look for work every day since then.

and you still did not address this point:

Did you report to EDD that you were working?

If the answer is no, expect the folks at the UI office to want to speak with you. If you did, then you should be fine.