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Diana, Gina, and Earl of Florida incorporate their computer technical support business as Fast Aid, LLC. This LLC was a franchise. The franchiser with the same name has the main office in Delaware. Diana contracts with Gina to respond to Fast Aid's customer service calls on a commission basis. 20% of the gross proceeds going to the franchiser and 20% of the proceeds going to The Florida franchise. What are the advantages and disadvantages to Fast Aid of classifying Gina as an independent contractor rather than as an employee member? Earl obtains a loan from First National Bank and signs a promissory note for repayment of the amount without indicating that he is doing so solely on behalf of Fast Aid. Fast Aid does not make enough profit its first year to make payments on the loan. Charging default, the bank files a suit against Earl, for the unpaid amount. Earl responds that he was acting on behalf of Fast Aid LLC. Will the bank succeed against Earl? Why or why not? Will the bank succeed against the Florida franchise and or the Delaware franchise of the same name? The franchise agreement has a right to cure provision. The franchiser terminates the franchise and demands possession of the premises. Diana and Gina demand the right to cure the default.
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