I signed a contract on 6/1/2008 for a business opportunity with a Ink & Toner Cartridge refilling company. They have provided a business plan to me already. The owner of the company came to my location and spent 1 day and looked at different locations with me. I have spoken to him a few times on the phone and the rest of the communications have been via email.
I also spent a few hours at a store that opened up in Pittsburgh, PA and saw how the operation was run.
After having trouble getting a loan through a couple franchise financing companies that the owner knew I tried getting a small business loan through an Business Development organization near me. They looked at the business plan and asked a few questions about the plan, which I didn't have the answers to. The questions were regarding to the store build out. So I contacted the Owner of the company to ask him made up the "build out" costs and he sent me a very brunt email telling me that I did not need to know what the costs where because he handles all of that. And if they needed to know that info, to have the bank deal with him directly.
So I did some research on the materials that were listed in the contract and found out that all the materials would cost approx. $3000-4000. Plus $5000-6000 in labor at the most. In the contract and business plan it has $34,000 set aside for build out. Then I read closer in the contract and it states "All remaining monies that are left on account after this agreement has been fulfilled will be considered as payment in full for all fees and services due XXXXXXX for their time, efforts, and assistance in getting the Refill Store ready to open for business. All monies are payable without any offsets."
The total cost of the business is $135,000 and I paid a deposit of $29,000.
In the contract, there is NO default clause for me or him.
I've asked the Owner to refund my deposit minus $4000 for his time and efforts.
It also says in the contract "Client and XXXXX agree that in the event of litigation, this agreement shall be governed by the laws and the jurisdiction of any state or federal court located within the State of South Carolina."
Any feedback on this situation would be greatly appreciated.
I also spent a few hours at a store that opened up in Pittsburgh, PA and saw how the operation was run.
After having trouble getting a loan through a couple franchise financing companies that the owner knew I tried getting a small business loan through an Business Development organization near me. They looked at the business plan and asked a few questions about the plan, which I didn't have the answers to. The questions were regarding to the store build out. So I contacted the Owner of the company to ask him made up the "build out" costs and he sent me a very brunt email telling me that I did not need to know what the costs where because he handles all of that. And if they needed to know that info, to have the bank deal with him directly.
So I did some research on the materials that were listed in the contract and found out that all the materials would cost approx. $3000-4000. Plus $5000-6000 in labor at the most. In the contract and business plan it has $34,000 set aside for build out. Then I read closer in the contract and it states "All remaining monies that are left on account after this agreement has been fulfilled will be considered as payment in full for all fees and services due XXXXXXX for their time, efforts, and assistance in getting the Refill Store ready to open for business. All monies are payable without any offsets."
The total cost of the business is $135,000 and I paid a deposit of $29,000.
In the contract, there is NO default clause for me or him.
I've asked the Owner to refund my deposit minus $4000 for his time and efforts.
It also says in the contract "Client and XXXXX agree that in the event of litigation, this agreement shall be governed by the laws and the jurisdiction of any state or federal court located within the State of South Carolina."
Any feedback on this situation would be greatly appreciated.
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