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Potential Customer Problem

Discussion in 'Business Fundamentals' started by FIREMAN Q, Dec 11, 2005.


    FIREMAN Q Senior Member
    Messages: 242

    Well after a busy week, 3 storms this week, I have recieved some potentially bad news. I plow a privatly owned McD's in my area. After the last clean-up or our noreaster I found out the guy who owns this store is a dead beat. From what I have been told at least one of his bank accounts is 4K in the hole, he may still owe the plow guy from last year, and he owes some other contractors.

    I am calling this a potential problem because I haven't sent the first invoice out yet. I am now very worried that I won't be recieving any payments. This is my first year using contracts so I don't have a no payment clause in my contracts. I will now!!!!!!

    So am I stuck in my contract if he doesn't pay??? What are my options if he doesn't pay?? what if I stop plowing???

    Thanks in advance:drinkup:

    CARDOCTOR PlowSite.com Addict
    Messages: 1,312

    if he doesnt pay in a reasonable amount of time. id stop plowing any take him to small claims court.

  3. plowman350

    plowman350 Senior Member
    Messages: 125

    Breech of contract

    A legal contract is one in which one party promises to do something for something in return which has value ($). In legal terms your customer's payment (something of value) is called "consideration."

    Both parties must uphold to the contract for it to be carried out. If you have carried out your responsibility (plowing) then he has a legal obligation to pay you. If he doesn't, and does not pay in a timely manner (by the due date) he has not upheld his contract, nad you have the right to not hold up yours. At that point you can take him to court for services rendered and not paid for.
  4. Joe D

    Joe D Senior Member
    Messages: 605

    How many big macs can you eat? :D
    No pay no plow
  5. chesterlawn

    chesterlawn Member
    Messages: 87

    about 10 years ago i plowed a mcdonalds in malvern pa. i went to get paid ,no contract,he said as far im concerened it never snowed.i took him to court i won he never showed.i asked the judge what if he doesnt pay? he told me i guess me and you will be eating free hamburgers for a while.i got paid.
  6. mrplowdude

    mrplowdude Senior Member
    Messages: 315

    I have a McDs around here and will be adding another 3 next winter. I found out that do a lot of small bills rather than one large one. They don't mind writing 3 checks for $250 but hate writing one for $750. You can bet he will sell to a bigger corporation. The one i take care of sold 3 years ago to a bigger corporation. This used to be the same situation you are in. Stay in there and you will get paid, if not place a lien on it, that way when he goes to sell he must pay you.
  7. hhfco

    hhfco PlowSite.com Veteran
    from MA
    Messages: 5

    Send the invoice ASAP. If it isn't paid you can go the court route or I'd try calling Corporate, maybe someone in risk management. Explain your situation, that you upheld your end of the contract by managing the snow & ice in a professional manner ensuring safe access for their customers and maintained the "neat & clean" appearance that customers have come to expect. Most franchises (sucessful ones anyway) and corporate leases have very high standards that the operator must adhere to. I know someone that leases a major brand gas station from the brand. They regularly inspect the place - bathrooms, experior paint (right down to the painted curbs), etc. If the inspector isn't happy the operator ends up very unhappy.

    Ask them if they can be of any assistance. A simple phone call from them might solve the problem. Maybe they would like to assume the contract, keep the place safe, minimize the risk of a slip & fall (you can be sure a slip and fall would name corporate in the suit - bigger pockets) and they would straighten it out with the operator.

    Then again when you send the bill it might not be an issue at all.
  8. AlwaysGreener

    AlwaysGreener Senior Member
    Messages: 192

    "problem because I haven't sent the first invoice out yet" :dizzy: :dizzy:

    WTF are you talking about...your bashing the guy even before you sent out the first invoice???..your in the wrong right now..first you send out the invoice and then see if you get paid if not follow the procedures to rectify the problem..not rocket science..Oh one more thing stop listening to what other people are saying it could be a fellow competitor that wants the business.

    FIREMAN Q Senior Member
    Messages: 242

    Always greener WTF are you talking about!!!! I brought up a question because of what I was told by a friend/employee of the company. This is why I said a POTENTIAL problem!!!! But hey thanks for the comment!

    As for everyone else, thank you for the advise. The first invoice in going out Tomorrow. Keeping my fingers crossed?????
  10. AlwaysGreener

    AlwaysGreener Senior Member
    Messages: 192

    You missed everything I said to you..who really cares about "Potential" problems..Until it's a problem you have no problem..just because "you heard" that they don't pay still does not justify a problem..
    In this business you cannot take everything so seriously next week you will be on here saying " someone said that blah blah" don't worry about it until you have to worry about it, its very easy to do when you get more experienced
  11. mrplowdude

    mrplowdude Senior Member
    Messages: 315

    When i was an employee for mcdonalds, a couple years ago i knew the same thing was happening to my store, the first thing to start bouncing is the employee checks. I had 5 checks(payroll) bounce before it was told she was selling. I would definetly view this as a potenial problem. Watch out for yourself and company first even if it is only a rumor.

    FIREMAN Q Senior Member
    Messages: 242

    Greener, I'm just trying to prepare myself for the what ifs.

    Mr. Plowdude...that is exactly what is happening. the bank will not even cash the checks from the store. The employees have to cash their checks in the store. Hopefully Corporate will be taking over soon, hopefully
  13. Ken1zk

    Ken1zk Senior Member
    Messages: 192

    If you have issues with bad payment document everything and send a copy to corporate along with a letter of explanation. Do it professionally and they will take notice. Hope all goes your way.
  14. qualitylawncare

    qualitylawncare Senior Member
    Messages: 501

    I agree with Ken..

    If we ever have a problem with our franchise locations (don't do McD's) but do hotels, burger king, arbys, subways, etc.; we submit the bill to corporate for payment. If an individual owner of a store is considering selling, he may not care about the service you provide or paying the bill. Corporate looks at it different. They own the name and want each store to reflect the same level of quality. You are dealing with bigger fish and the $500.00 you bill them is meaningless, but they should be able to help you out.

    Just my $.02
    Good Luck!