1. Welcome to PlowSite. Notice a fresh look and new features? It’s now easier to share photos and videos, find popular topics fast, and enjoy expanded user profiles. If you have any questions, click HELP at the top or bottom of any page, or send an email to help@plowsite.com. We welcome your feedback.

    Dismiss Notice

customers going out of business

Discussion in 'Commercial Snow Removal' started by elite1msmith, Mar 22, 2010.

  1. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    im pretty sure i know the end result of this but you guys tell me what you think


    I just pulled up to an account and the manager came outside, thanked me for doing a great job, and then proceded to tell me that they were going out of business. and that he adviced me not to do any more work.

    this is a resturant franchise. so it is just this one store closing. I was unaware that this was a franchise, i honestly thought i was doing business with the coperation. the "district manager" was whom signed my aggreeement,

    my aggreement was for a full year of service for $xxx per month. thats snow (over 1 inch)and lawncare included. any ice, or snows less than 1 inch they paid per event. (i know it weird they wanted it that way)

    obviously the snow end of it costs way more than mowing the 2 small parkways that they own. so a good deal of $xxx per month, even in the summer time was the snow payments

    i have a cancellation cause that states that if they cancel service early they have to go back and pay me for all items completed on the property for the amounts listed in the per push aggreement prices. there will be no disputing service and what was done, because they received an invoice for every storm, at the end of the invoice i then discount the amount so that it reads "$0.00" owed. we use this manor to track exactly what work was done.

    so i placed a call to the fanchise owner and got a voice mail with no call back yet. i store manager told me that a different local business owner was going to be taken over. i will be talking with him this after noon.

    What are my options, where do you think this is going?
     
  2. snobgone

    snobgone Senior Member
    from CT
    Messages: 122

    Your reaction would depend on how much they owe you for the services you have already rendered. Are they behind? Who actually owns the building, not the business? If te building is going to be part of the sale, you may be able to put a lien on it. The bad part is, "you cant get blood from a stone:" If they owe banks money and are defaulting on loans, you will be one of the last in line to get paid unfortunately.
     
  3. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    well just had a meeting with the new company (the owner) and they will be buying the building so it sounds as if the old fanchise owners do in fact own that building. i will have to go thru my logs to figure out how much exactly will be owed.
     
  4. snobgone

    snobgone Senior Member
    from CT
    Messages: 122

    I think if you can move quickly on a lien for the money they do owe you, then upon sale of the building you will get your money. (at least that's how it works in CT) If you have an attorney, it may be worth the call or going to the town and asking them how to file a lien. Good luck.

    Very smart of you to include a compenstaion clause for services rendered.
     
  5. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    amount wasnt not as big as i thought but they would owe me $1400 bucks

    the hickup in the whole thing, I would like to get the the new owners business as well. and it might look bad if we delayed somehow the sale of the property? but i guess theres no prommises being made that he would go with me anyway.

    I offer to find out if they would just like to take over the contract but i have yet to get a call back
     
    Last edited: Mar 22, 2010
  6. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    i found i jsut got sick of my bids being compaired as apples to oranges. a seasonal account vs a per push rate. so now all my bids have a price per push, seasonal and a retainer fee aggreement so that the person reading it can choose the option that works best for them. So basicly all i did was include a cancellation clause that states if they cancel early then all invoices will be billed at the orginal amounts at a per push price. no discounts given.
     
  7. Bossman 92

    Bossman 92 PlowSite.com Addict
    Messages: 1,770

    That's a great idea! Later this year I want to change some things up in the wording of our contracts, if you don't mind I may pick your brain.

    Bossman
     
  8. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    be my guess to send me a pm
     
  9. LoneCowboy

    LoneCowboy PlowSite.com Addict
    Messages: 1,760

    in Colorado anyway, you can't lien for maintenance work.
    only improvements.

    don't know how it works in Illinois.

    personally I think you're boned and should just write it off and move on without it.
     
  10. hydro_37

    hydro_37 PlowSite Veteran
    from iowa
    Messages: 3,790

    In Iowa you can put a lien on for snow removel...I am doing that tomorrow for 1 account
     
  11. Ranger620

    Ranger620 PlowSite Veteran
    Messages: 4,489

    I found out one of my new accounts this year was going out of business. Found out by watching the news. They owe me several $$$ along with every one else. All I can do is send in my invoices and hope after the bankrupcy theres a few dollars to come my way. Last time this happened was about 10 years ago I was owed 2653.00 and receaved a check for 795 so basically 30% I was happy I got some thing
     
  12. elite1msmith

    elite1msmith 2000 Club Member
    from chicago
    Messages: 2,762

    i had voiced my concerns later in the day to the manager, and he assured me that the bills would be paid. this is a fanchise, but the owner, also owns about 25 other fanchises in this area. he is not shutting down his whole operation, he is just closing this one store. so i dont really know if this 1 store was filed as its own business and their for will be bankruted or if this store is filed as a part of the 25 that they own and theirfore its highly unlikely that they will file bankrupcy.

    i made a call to the owner...he never returned my call

    I just made a call to the coperate office and they transfered me over to a person in charge of accounts payable for that location, she didnt pick up, could be at lunch. i guess try back later
     
  13. Ranger620

    Ranger620 PlowSite Veteran
    Messages: 4,489

    If there is no bankrupcy then you can simply take him to court. You should have a good chance at getting your money.
     
  14. MahonLawnCare

    MahonLawnCare Senior Member
    from Ohio
    Messages: 851

    put a lien on the building so he cant sell it until he pays you if he's not paying