Kevin Donahue
Junior Member
[/B]What is the name of your state? Florida
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I own a franchise that did an audit on my business and claimed that I owe them 49K from back fees and penalties. I paid my fees at 4% for three years, but because they claim I owed them money they retro'd my fees to 10% making my fee huge. I didn't agree that I owed the money and disagreed, hired a "lay down" lawyer who told them that since we couldn't find the records of some of the jobs we would be willing to settle for 17K (even though I didn't think I owed anything). The franchior said NO they want it all and sent me a contract for 49K to be paid in monthly installments at 10% interest. I told them I couldn't pay that huge payment because I was already behind on my fees and I owed the IRS money. They said if I didn't sign and return it within 24 hours they would breach my contract and take away my business. I signed the contract just so I could sell the business and walk away. Well my business won't sell (I'm selling it well below value without making a nickel) and as I thought I can't make the payments. I have two questions, 1) is there rules that the franchor in Tennessee has to follow when auditing a franchise in Florida? 2) is the 49K installment contract valid since they knew when I signed it I couldn't make the payments? Thank you for any help in this matter.What is the name of your state?
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I own a franchise that did an audit on my business and claimed that I owe them 49K from back fees and penalties. I paid my fees at 4% for three years, but because they claim I owed them money they retro'd my fees to 10% making my fee huge. I didn't agree that I owed the money and disagreed, hired a "lay down" lawyer who told them that since we couldn't find the records of some of the jobs we would be willing to settle for 17K (even though I didn't think I owed anything). The franchior said NO they want it all and sent me a contract for 49K to be paid in monthly installments at 10% interest. I told them I couldn't pay that huge payment because I was already behind on my fees and I owed the IRS money. They said if I didn't sign and return it within 24 hours they would breach my contract and take away my business. I signed the contract just so I could sell the business and walk away. Well my business won't sell (I'm selling it well below value without making a nickel) and as I thought I can't make the payments. I have two questions, 1) is there rules that the franchor in Tennessee has to follow when auditing a franchise in Florida? 2) is the 49K installment contract valid since they knew when I signed it I couldn't make the payments? Thank you for any help in this matter.What is the name of your state?
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