help-us-please
Junior Member
What is the name of your state?
Illinois
I bought a laundromat in February, under the assumption that it was making x amount of money. The previous owner showed me an income statement for the past year and guaranteed my broker that these were actual results and I believe she signed something confirming those results. She did also let me see a tax return but it did not say she was making any money because it was tied in with her personal return and another laundromat she had owned.
Now that I've owned the business for over three months, it is clear that I am not making nearly that much money. In fact I spoke with the previous owner and she told me that she really did not keep good records of her income because she was using her personal checkbook to recieve money and write checks to pay her bills. She based her financial results on a water analysis of her business and not her bank deposits.
Furthermore, 21% of her business was drop off laundry (she washed and folded clothes for a premium). This required her to deposit her own quarters into the machines to wash the clothes, totaling approximately $500 a month, which she neglected to include in her income statement.
She actually holds the note on my loan, so I pay her every month for the business.
Do I have any recourse? Can I sue her for misrepresentation or do I not even have a case?
Thank you.
Illinois
I bought a laundromat in February, under the assumption that it was making x amount of money. The previous owner showed me an income statement for the past year and guaranteed my broker that these were actual results and I believe she signed something confirming those results. She did also let me see a tax return but it did not say she was making any money because it was tied in with her personal return and another laundromat she had owned.
Now that I've owned the business for over three months, it is clear that I am not making nearly that much money. In fact I spoke with the previous owner and she told me that she really did not keep good records of her income because she was using her personal checkbook to recieve money and write checks to pay her bills. She based her financial results on a water analysis of her business and not her bank deposits.
Furthermore, 21% of her business was drop off laundry (she washed and folded clothes for a premium). This required her to deposit her own quarters into the machines to wash the clothes, totaling approximately $500 a month, which she neglected to include in her income statement.
She actually holds the note on my loan, so I pay her every month for the business.
Do I have any recourse? Can I sue her for misrepresentation or do I not even have a case?
Thank you.
