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Log In / Register | Jun 22, 2017
Granville_Bean's picture

well duh

BJ expresses amazement that: "Even if you and your spouse dies within the 10year agreement you are still responsible. It amazes me that death does not void the contract."

Well duh.  If YOU have a contract that SOMEONE ELSE is obligated to pay YOU, and you die, then the other party pays your estate.  The obligation in your favor is an asset of your estate.  The other guy doesn't get out of his debt to you because, "Phew, BJ died, now I don't have to pay".

And if YOU have a contract to pay SOMEONE ELSE, then no, your obligation isn't erased upon your death.  It is a liability of your estate.  Your estate pays off the debts your left.  The other guy doesn't have to say "darn, now I can't collect".  You think if you die your mortgage is forgiven and the bank doesn't get paid for your house, you can just leave it to your heirs and the mortgage evaporates?

Now, if you have negative net worth, then the other guy may not be able to find a way to collect.  But it is not your "children" who pay, it is your estate.  Though (again) if you have negatvie net worth there will be nothing to leave to the chidren.  But that is hardly unique to franchising.

BJ continues to amaze with how naive she really is.  It must be true because you can't make this stuff up, nobody would believe it! 

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