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Sep26

Unemployement for previous owner?

I just bought a retail franchise from the current franchisee who owns it. I paid him goodwill and the franchise fee to buy the business. As a business owner he was paying himself through salary and after he sold the business he applied for unemployement. My concern was that he willingly sold the business and got paid in the form of goodwill does he still qualify for unemployment benefits?

Unfortunately, yes, the previous owner probably does qualify for unemployment. It sounds like you inked this deal without benefit of legal counsel, which is never a good idea. If the contract had been properly written, it would have required the former owner to resign his position with the company, which would have made him ineligible for unemployment.

You can certainly contest the unemployment on the grounds that it was his choice to sell the company and give up his position, but there is no guarantee that you will win.

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This entry was posted on Sunday, September 26th, 2010 at 7:10 pm and is filed under
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One Response to “Unemployement for previous owner?”

  1. » Unemployement for previous owner? Human Resource Blog « Human Resources 123 Says:

    [...] is the original post: » Unemployement for previous owner? Human Resource Blog Comments [...]

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