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NSW Franchise Partner Kicked Me Out - What Can I Do?

Discussion in 'Commercial Law Forum' started by Perihan, 30 October 2014.

  1. Perihan

    Perihan Member

    30 October 2014
    Likes Received:

    In July I opened a company with a so called friend with 50% shares each. We bought a 40K franchise that comes with a car. It is a hired car services company. We agreed he becomes the sole director and I become a shareholder, as I have another business and did not want to be liable to something I can't control.

    I lent the company 21K. A month ago, I got an email from him stating that he is kicking me out and that I have 2 options. Either I get 16k back and leave or only get 10% of the profit. He then texted me saying that he will sell the franchise and will pay me all the money back.

    I have all these conversations in emails and in text msgs. He changed all passwords so that I won't see any data or get informed of anything. I know he sold the car and got paid for it for sure. Today, I texted him asking about the money I should have received a while ago and he replied saying that the business did not get sold. I know he sold the car and got paid for it and I know the business is running. I feel lost and I want to know my legal rights under commercial law as well as how to get my money back.
  2. Tim W

    Tim W Lawyer

    28 April 2014
    Likes Received:
    Let be sure I understand things (correct me where I am wrong)...
    1. Who is the franchisee? Is your company, or the other person personally?

    2. Is your entity a corporation, or a partnership?

    3. If it's a corporation, then are there are only two shareholders - that is, you and him?

    4. How many shares do you each own - one each? Or are there more than two shares?

    5. What do you mean by a "hired car services company"?
      Is it a Hire Car (ie a "limo")?
      Is the car owned or leased? And by whom - the company, or your co-shareholder personally?

    6. Is the $21,000 what you paid for your share at the start, or is it a separate loan?
    DennisD likes this.
  3. DennisD

    DennisD Well-Known Member

    11 July 2014
    Likes Received:
    If you answer Tim W's questions we'll all be in a better position to respond

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