Legal Question in Business Law in Texas

I own a bar and am in the process of selling it. One of my original investors has contacted the potential buyers and is telling them they can not buy my business. This investor is upset because the business was not successful and he has lost money. Does he have any legal right to interfere with this sale? He is not an owner, and has only invested a small amount of money. Please advise


Asked on 6/28/11, 5:04 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say the following. It's not really possible to say without looking at all the underlying documentation. For example, is there a promissory note for the investment and what are the terms? Or did the investor get equity and is therefore an owner of the business? I know you said he's not an owner, but investors usually are owners in some capacity. You really need to consult with a good business or franchise attorney in your area to review everything and for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 6/29/11, 7:18 am


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