C
chicagobusowner
Guest
What is the name of your state?What is the name of your state? IL
I have been owned a franchise in Chicago-land area for almost 2 years. The franchise term is for 8 years with a 6% royalty. I essentially seem to have signed a contract guaranteeing them an annuity of at least $6,000 per year for 8 years. There are minimum sales requirements of $100,000 per year. I have nearly exhausted all savings, and will be unable to meet my debt payments (mortgage, home equity loan) in 4-5 months. I am married with 1 child. Therefore, I am considering returning to full-time employment.
My corporation signed the contract and was personally guaranteed with my name.
My question: Assuming I am unable to sell the franchise and I close the doors...
1. Even if my corporation files bankruptcy, am I personally liable?
2. Are all my and my wife's assets susceptible, or only those only in name?
3. Can they sue for the remaining royalties based on the minimums... $6,000 times 6 remaining years = $36,000.
4. Can they go after my home?
5. Can they go after my 401k/IRA's?
Thanks so much for your advice.
I have been owned a franchise in Chicago-land area for almost 2 years. The franchise term is for 8 years with a 6% royalty. I essentially seem to have signed a contract guaranteeing them an annuity of at least $6,000 per year for 8 years. There are minimum sales requirements of $100,000 per year. I have nearly exhausted all savings, and will be unable to meet my debt payments (mortgage, home equity loan) in 4-5 months. I am married with 1 child. Therefore, I am considering returning to full-time employment.
My corporation signed the contract and was personally guaranteed with my name.
My question: Assuming I am unable to sell the franchise and I close the doors...
1. Even if my corporation files bankruptcy, am I personally liable?
2. Are all my and my wife's assets susceptible, or only those only in name?
3. Can they sue for the remaining royalties based on the minimums... $6,000 times 6 remaining years = $36,000.
4. Can they go after my home?
5. Can they go after my 401k/IRA's?
Thanks so much for your advice.