The collapse of any business relationship and the ramifications it has for the parties is often underestimated. Breakups are usually acrimonious and involve many personal and business issues.
A partnership in a franchise business is usually between two or more people who may operate as a partnership in the true sense or they may operate through a corporate or trust structure. Usually, all partners are actively involved in the business, have made a financial investment and rely on the business’s performance for a financial return.
A partnership or shareholder dispute really only has four outcomes: the parties reconcile and business goes on; the franchise is sold to a third party; one party buys out the other party; or the franchise is shut down. The last three have implications for the partners, which are discussed in this article.
Consequences under the partnership agreement… read on.