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I am a franchisee & this is my McDonald's Devon and Keith formed a partnership to start and start and operate a McDonald's franchise. Two
I am a franchisee & this is my McDonald's Devon and Keith formed a partnership to start and start and operate a McDonald's franchise. Two years later, Keith left the partnership and franchise. Unbeknownst to Devon and the McDonald's franchisor, Keith had charged numerous expenses to their partnership account. These expenses totalled tens of thousands of dollars worth of debt for the partnership. What option do Devon and the McDonald's franchisor have in this situation? Both Devon and the McDonald's franchisor have nothing to worry because, according to law, debtors are responsible for their own debts. Business creditors can only pursue Keith since his signature is on debt contracts. The McDonald's franchisor is clear of any debt obligations signed by Keith. Business creditors would expect Devon to pay at least half the debt since he owns 50 percent of the business through the partnership agreement. They would not expect payment from the McDonald's franchisor, since they didn't benefit from the debt that Keith had obligated the partnership. O Business creditors will expect full payment from Devon only, but not the McDonald's franchisor
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