Results 1 to 2 of 2

Thread: Small business partnership bisbandment, need some advice.

  1. #1

    Default Small business partnership bisbandment, need some advice.

    I went into business with a friend of mine, age 57. He had a great recipe for gluten free chocolate chip cookies. It was primarily his idea. I never started a business before. So he decided to start funding my business with portions from his disability checks. He handed to me the cash $10,000 total over 4-5 months. To deposit into my business checking account to purchase equipment, ingredients, permits and a commercial kitchen. We were doing really well, just needed to get the states health permit to start supplying local stores. I didn't show up to the kitchen for 10 nights while I worked that stretch at my job. He freaked out on me. He was not associated in any contract or form. Other than a willingness to fund the business and to test bake in the kitchen because I didn't know the recipe. Everything was under my name and everything about the business was solely under me. No contract agreements or anything. Haven't even made a sale.

    I tried to work things out with him. One night at work he wanted me to go to the kitchen at precisely 9:12pm. I didn't get off work until 10:30pm. I told him I would be there right after. He said he was through with me. Done. Because I wouldn't abandoned my day job .So he wants me to pay everything back to him. In which I gave him everything he paid for. The mixer, the kitchen, everything. Which he still uses to this day. I don't have anything that he paid for and I cannot do business, so I am not. He sent me a demand letter, claiming that I abandoned my business and manipulated him. Claiming that I prematurely quit and vanished being completely adolescent and immature. Now that he has everything he paid for because he decided he was through with me. He wants to sue me for $10k.

    He's making outrageous claims that I was on drugs, with no way to prove it. I am on probation, being drug screened. I haven't used a substance, he is also trying to tie in my personal legal matter into the business. Which my personal legal situation and our business are not associated in anyway which makes me feel harassed.

    I did really well for never starting a business. He said he's spent the past 9-10months recovering as the "damaged party." Not sure why he would think that I was so close to making sales, that one situation, where I was absent for 10 days, would blow everything up and assumed that I was abandoning the business. I tried to make things right, he wouldn't even meet up with me in person to discuss things formally. He was the one who backed out. Not me. Now's he trying to hit me that I abandoned him, took advantage of him saying how could a scumbag do something so terrible to a good hearted person offering a golden opportunity and wants me to pay him back for the money that he willingly gave me to fund the business, when I had no intention for anything like this to happen.

    Not sure what to do. There are finer detail but that's the gist of my situation. Thank you.

  2. #2
    Post Impressionist
    Array
    vangogh's Avatar

    Join Date
    Aug 2008
    Location
    Boulder, Colorado
    Posts
    15,059
    Blog Entries
    1

    Default

    Welcome to the forum Mbk6452. Sorry it has to be under such troubling conditions.

    It does sound like you're in a bad situation and I think this is one of the difficulties are going into business with friends. If something bad happens to the business, it could affect the friendship. If this person is someone you no longer want to be friends with, I'd say walk away however you can and move on. If you want to remain friends, then I would do what you can to reach some kind of compromise with him. That could mean giving him some of the money back that he invested.

    I guess that's the first question you have to answer. Do you want to continue to know this person? I'm guessing you do, but maybe you just want to put this situation behind you. Without contracts there's probably not much he could do to force you to pay him back, but again if you want to remain friends you have to find a way to work things out.

    How would you ideally like to see this all turn out?
    l Join me as I share my creative process and journey as a writer | StevenBradley.me
    l Design, Development, Marketing, and SEO Tutorials | Steven Bradley's Notebook
    l Get my book about Design Fundamentals

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •