Snail you got to get out on the road and actually do something before someone will put something into that account for you.
A follow up to what speedy said yesterday and that is when Jimmy Leadfoot, Rocket Pete along with Torpedo Frank just to name a few of the guys who left who where not the easiest individuales on equipment, infact they created more damage then what they everv generated in any meaningful revenue.
The other thing to note that while the franchises sold was as mentioned financed by the company by debt acquired and collateralized by a franchise contract that stated that on leaving the contractual agreement the individual must not work for any of the stated customers in the contract. Now there was one customer that due to bad timing and renegotiation of the contract allowed a certain group of individuals that I won’t mention but we all know who they are walk out with a sizable portion of the business.
The other thing that was stated in the original contract is that minus the liability and any administration charges owed on termination of the contract all money’s paid toward the franchisees would be returned to the owner of the franchise apon termination regardless if the company or franchisees terminated the contract. This also includes a portion of the good will built up over the time of owner ship to the franchisee.
The wrong doing here was they wanted the goodwill that went with what they stole. Yes many could argue the provisions about the new very lucrative customer was not included yet the customer paid up front for the service that was again financed by the company because the franchise contract was late in being signed and reinstated, restructured call it what you like.
The thing that boggles many on the outside looking at this is how much could of been taken of the contract if the company already paid the customers bill. The customer would have to terminate the liability owed to go with the new group who defected, jumped ship, pirated the companies interest.
Of course I don’t know all the details that transpired but I would think first that there would be a penalty to the customer for administration charges to set up the loan never mind the goodwill althow now lost but never the less writen into the franchise contract even if the new customer was not included due to timing.
It sounds like a mess for sure and yes there will be court costs blah, blah associated with the whole ugly thing mess. Then there is the write down that the allowable depreciation didn’t count for. One being the customers name splashed down the side of the trailers. The list can go on and on. Granted I did hear that maybe those trailers will be issued as part payment keeping some of the liability to the credit on the books.
Again to a savvy investors having leverage credit in the form of receivables on the books is deadly to raising revenue unless the company reorganizes the debt into a bond with the approval of elected board members.
Do your own DD and get down on the street at street level and talk too Jimmy Leadfoot or any of the other mentioned characters here that stands behind this info I got.
