Thames | MarkeyThames | Markey2026-07-16T09:30:30Zhttps://www.thamesmarkey.law/feed/atom/WordPress/wp-content/uploads/sites/1300733/2020/07/cropped-site-identity-32x32.jpgOn Behalf of Thames | Markey<![CDATA[Assignment and subletting rights for Florida businesses]]>https://www.thamesmarkey.law/?p=476472026-07-13T09:31:32Z2026-07-16T09:30:30ZAssignment vs. subletting
When considering how to go about your lease transfer, you have the option to assign or sublet your space. With assignment, you surrender your entire leasehold interest to another party. This new tenant takes over your rights and obligations, directly dealing with your landlord.
With subletting, you let another party use all or part of your space for a portion of the remaining lease term. You generally function like a landlord while remaining responsible under the original lease. Whether you choose assignment or subletting, it is vital to ensure your lease contract permits it.
Critical clauses to watch out for
State law is generally particular about contracts, and courts will often uphold the language used in your agreement. It can be helpful to read the fine print of your lease terms to check for these provisions:
Recapture rights: Your landlord will terminate your lease and take the space back entirely if you ask for permission to sublet.
Profit sharing: You may be required to split or forfeit any excess rent gained from a subtenant.
Ongoing liability: You remain accountable if the new tenant fails to pay rent, unless there is a signed formal release.
Unless your lease agreement explicitly gives your landlord sole and absolute discretion to say no, they cannot deny your request to transfer the lease.
Protecting your business
When speaking with your landlord, you can negotiate a permitted transfer clause on the agreement to give your business greater flexibility. This provision gives you the right to assign the lease without the landlord’s consent in key transactions like a merger, sale of the business or transfer to an affiliate.
Having this clause helps ensure your lease moves with the business and will not disrupt a deal. You may also want to get this agreement in writing and formally documented to avoid sudden terminations of your tenancy by your landlord.
Making your lease work for your business
Negotiating favorable transfer provisions upfront allows you to maintain flexibility needed for the long-term survival of your company. A lawyer can help you review your commercial lease terms and protect your interests in any transaction.
]]>On Behalf of Thames | Markey<![CDATA[Can you own competing franchises?]]>https://www.thamesmarkey.law/?p=476422026-06-12T12:44:23Z2026-06-17T12:43:26ZAs a franchise business owner, you may find yourself interested in multiple franchises that are in the same space. For instance, maybe you own one fast-food restaurant location, and you are looking forward to opening another. But you are not sure that you want to open the exact same type of business in a new location, and you are instead looking at other types of fast-food franchises.
Even though you fully understand how to run a franchise location, these businesses would technically be competing against one another for the same group of potential customers. Are you allowed to open multiple franchises that are connected to different, competing brands?
Checking your franchise agreement
As a general rule, the answer is yes. You likely can own multiple franchises from different brands, even if they compete with one another. You could also consider starting a franchise location in an entirely different industry, which would not be competing with your existing fast-food location. It depends if you want to branch out into a new industry and if you think your local area could support it.But the key is simply to check the franchise agreement that you signed for the initial location. If that agreement stipulates that you cannot own a competing franchise, you would be violating the contract by opening your new franchise. So it is very important to understand exactly what rules the documentation lays out and what you have already agreed to when taking steps to move forward with another business opportunity. If you have any questions or concerns during this time, it can help to work with an experienced attorney.
]]>On Behalf of Thames | Markey<![CDATA[Report: Business bankruptcies rose by 7.1% last year]]>https://www.thamesmarkey.law/?p=476402026-06-03T13:29:44Z2026-06-08T13:28:27ZEarlier this year, the U.S. government released reports documenting business bankruptcy filings in 2025. What they found is that these bankruptcies increased by a significant amount, rising by 7.1% during the course of the year.In 2024, there were 23,107 business bankruptcies. The 7.1% increase is due to the fact that there were 24,737 business bankruptcies in 2025.There has been a corresponding rise in personal bankruptcies, which went up by 11.2% over the same time period. Personal bankruptcies are much more common than commercial bankruptcies, with a total of 549,577 bankruptcies declared in 2025.
3 years of increases
On a long-term scale, bankruptcies had been dropping and had been doing so for over a decade. But that reversed course in 2022. That year, there were a low of 13,481 business bankruptcy filings. Every year since, the total has increased, culminating in more than 24,000 business bankruptcies last year.It will be very interesting to see if the same trend continues in 2026. Government reports do note that filings have not increased to historical highs, even if there has been a stark reversal from the decrease in bankruptcy filings seen in previous years.
What are your bankruptcy options?
Reports like these help demonstrate that bankruptcy is a growing issue in the United States and could affect more and more business owners in the months and years to come. If you find yourself in this position, it is very important to understand exactly what bankruptcy options you have and what steps you will need to take while navigating this process.]]>On Behalf of Thames | Markey<![CDATA[The main risks of terminating a franchise agreement early]]>https://www.thamesmarkey.law/?p=476362026-05-18T10:19:27Z2026-05-21T10:18:44ZFranchisors protect themselves contractually
Typically, franchise contracts do not just impose standards on franchisees and outline their financial obligations. They also include provisions addressing the possibility of an early termination. Franchisors often impose a financial penalty for early franchise termination. It may cost thousands of dollars to end the franchise contract before its expiration or renewal date.
Additionally, the owner of the franchise may be subject to restrictive covenants. Nondisclosure agreements may prevent them from sharing information about how the franchise operates. A noncompete agreement may prevent them from establishing a company in the same industry and community for multiple years after a franchise closes.
In some cases, such as when franchisors do not make all of the mandatory disclosures about the opportunity, the franchisee can terminate the contract early without penalties. Other times, they may need to negotiate with the franchisor to limit the consequences of early termination.
Reviewing franchise agreements thoroughly before announcing any significant changes to the franchisor can be beneficial for franchisees who want to move on to new opportunities. Getting experienced legal guidance can help franchisees identify risks and minimize the consequences of an early termination.
]]>On Behalf of Thames | Markey<![CDATA[Can you sell your business during bankruptcy?]]>https://www.thamesmarkey.law/?p=476322026-05-11T15:30:29Z2026-05-14T15:29:50ZWhen selling during bankruptcy may be an option
Not every business will qualify for a sale during bankruptcy. Even so, some business owners explore this option after filing when they want to preserve value before it declines further. A sale may be possible if:
You continue operating the business or maintain assets that may attract buyers
You receive interest from a potential buyer or investor
Your current debt load restricts your ability to operate under normal conditions
You want to avoid liquidation at a reduced value
You seek to maintain jobs or ongoing business relationships
Timing can influence the outcome. Taking action earlier in the case may expand available options and increase buyer interest.
How the sale process works during bankruptcy
Most business sales during bankruptcy take place under Chapter 11. In this setting, the court oversees the proposed sale and evaluates whether it meets legal standards for fairness.
You may continue operating as a debtor in possession while preparing the business for sale. The process typically involves identifying which assets or operations will be sold, marketing those assets to potential buyers and reviewing any offers received. The court will then review the proposed transaction before deciding whether to approve it.
This structure can make the business more attractive to buyers. Court oversight provides a defined process, which can reduce uncertainty and support a more orderly transaction.
What selling during bankruptcy can and cannot do
A sale during bankruptcy can convert business assets into funds that apply toward outstanding debts. It may also allow certain parts of the business to continue under new ownership, which can benefit employees and existing clients.
At the same time, this option has limits. A sale does not ensure full repayment of all debts, and ownership of the business will transfer once the transaction is complete.
The process also requires full financial disclosure and ongoing court involvement. You will need to provide accurate information and meet required deadlines throughout the case.
A strategic exit, not just an ending
Selling a business during bankruptcy can feel like letting go of something built over many years. That reaction is common. A planned sale, however, can provide a more controlled outcome than a sudden closure.
A structured process gives you more influence over how the business is presented and how offers are evaluated. It may also reduce disruption and limit further loss.
When financial strain continues during a bankruptcy case, closure is not always the only outcome. Some business owners use a sale during bankruptcy to address debt while preserving remaining value. Each situation will depend on the business, its assets and its overall financial condition.
]]>On Behalf of Thames | Markey<![CDATA[4 tips when negotiating a commercial real estate lease]]>https://www.thamesmarkey.law/?p=476332026-05-04T14:40:59Z2026-05-07T14:40:13ZEntering a commercial real estate lease is a major decision for any business because the terms you agree to can affect your costs, flexibility and long-term growth.
Unlike residential rentals, commercial real estate leases offer room for negotiation. Understanding key areas before signing can help you secure a better agreement that supports your business goals.
1. Understand the full cost of rent
Base rent is only part of what you may pay. Many leases include additional costs such as maintenance, insurance and property taxes.Clarifying what expenses are included and how they are calculated will help you plan your budget more accurately.
2. Negotiate lease length carefully
The length of the lease can impact both risk and stability. A shorter term offers flexibility if your business needs change. On the other hand, a longer term may provide better pricing or incentives.
3. Clarify improvements and build out terms
Most commercial spaces require adjustments before use. These changes may include layout updates or equipment installation. Before signing the lease, discuss who will cover the cost of improvements and whether you must restore the property when you leave. Having clear terms prevents disputes later and protects your investment.
4. Define permitted use clearly
Every lease should state how the property can be used. This ensures your business activities align with zoning rules and lease conditions.If possible, try to negotiate broad use terms where possible because it allows your business to grow or adapt without needing major changes to the agreement.
Final thoughts
Negotiating a commercial real estate lease requires careful attention to detail and a clear understanding of your business needs. Each clause can have long-term financial and operational effects.Taking time to review and negotiate key terms can help you avoid costly mistakes. If you need support during the process, seeking reliable legal guidance can help ensure your agreement aligns with your goals.]]>On Behalf of Thames | Markey<![CDATA[Understand more about Chapter 11 business bankruptcy]]>https://www.thamesmarkey.law/?p=476222026-04-17T12:27:10Z2026-04-22T12:26:22ZRunning a business comes with financial risks, and sometimes challenges can become overwhelming. When debts grow beyond control, many business owners start exploring structured ways to recover without shutting down completely.
Chapter 11 bankruptcy offers a path that focuses on reorganization rather than closure. It allows a business to continue operating while working toward a manageable way to address its financial obligations.
What Chapter 11 bankruptcy means
Chapter 11 is designed to help businesses restructure their debts while staying open. Instead of liquidating assets, the business creates a plan that outlines how it will repay creditors over time. This process gives companies a chance to stabilize operations, maintain employees, and preserve customer relationships while resolving financial pressure.
The reorganization plan process
A key part of Chapter 11 is the development of a reorganization plan. This plan explains how debts will be handled, including timelines and payment priorities. The court reviews the plan, and creditors may also have input before it is approved. Once accepted, the business must follow the plan closely to remain compliant.
Choosing Chapter 11 over other options
Businesses facing financial distress often compare different types of bankruptcy. Chapter 7 focuses on closing and selling assets, while Chapter 11 allows continued operation. For companies that still have value and potential for recovery, Chapter 11 may be a more suitable option as it supports rebuilding rather than ending the business.
Impact on contracts and operations
Chapter 11 can affect existing agreements such as leases or supplier contracts. The business may choose to continue, modify or end certain agreements as part of its recovery strategy. This flexibility helps reduce financial strain and allows the business to focus on sustainable operations moving forward.
Final thoughts on navigating Chapter 11
Chapter 11 bankruptcy can provide a valuable opportunity for businesses to recover and move forward with a clearer financial structure. However, it requires careful planning and commitment to the approved process. Seeking reliable legal guidance can help ensure that decisions made during this process support long-term stability and growth.]]>On Behalf of Thames | Markey<![CDATA[What should business owners know before filing Chapter 11?]]>https://www.thamesmarkey.law/?p=476202026-04-03T12:21:42Z2026-04-08T12:21:02ZRunning a business through financial strain can force difficult decisions. When debts begin to surpass revenue, it is important to understand your options before taking action.
Chapter 11 can offer businesses a chance to reorganize and keep operating while addressing serious financial problems. Still, the process is rarely something a business owner should enter without preparation.
The steps to take before filing Chapter 11
Chapter 11 bankruptcy is a type of business reorganization that allows a company to continue operating while it works to restructure its debts. Instead of shutting down, the business may be able to negotiate with creditors, adjust payment obligations and create a court-approved plan to regain financial stability.One of the most important first steps before filing for Chapter 11 is getting your records in order. Business owners should gather up-to-date financial statements, tax returns and a complete list of assets and liabilities. If records are incomplete or inaccurate, the process can slow down quickly. It may also raise concerns with the court and make it more difficult to create a realistic reorganization plan.It is also important to take a careful look at creditors and cash flow. Business owners should identify both secured and unsecured creditors, determine which debts are overdue and review any collection efforts, lawsuits or pending defaults. At the same time, they need a clear picture of how much money is coming in, which expenses are essential and whether the business can continue operating during the bankruptcy process. Since Chapter 11 is designed to help businesses reorganize while staying open, having a realistic understanding of day-to-day finances is critical.Legal and strategic planning should also happen well before any petition is filed. Business owners need to consider whether Chapter 11 is truly the right option, which contracts or leases may need to be kept or ended and whether there are any risks involving personal guarantees, ownership disputes or employee obligations. Taking the time to plan ahead can help avoid costly surprises and put the business in a stronger position for negotiations, court approval and long-term recovery.Every business situation is different, and the choices made before filing can shape what happens after. Speaking with a legal professional early can help business owners understand their risks, protect what matters most and make informed decisions about the road ahead.]]>On Behalf of Thames | Markey<![CDATA[How to handle debt in an inherited family business]]>https://www.thamesmarkey.law/?p=476142026-03-23T08:57:34Z2026-03-26T08:56:27ZInheriting a family business in Florida often brings unexpected financial burdens. Debt usually stems from unpaid commercial leases, lines of credit or long-term equipment loans.
These liabilities immediately impact your cash flow and limit your ability to grow the company. As the new owner, you must face these obligations before they overwhelm the operation.
Renegotiate commercial leases
Landlords often prefer steady tenants over vacant storefronts. Reach out to the property owner to discuss current market rates and payment terms. You can lower monthly expenses by extending the lease or adjusting the square footage. This proactive step frees up capital for other essential business needs.
Utilize subchapter V restructuring
Florida small businesses often qualify for Subchapter V under Chapter 11. This legal tool offers a streamlined path to reorganize debt without the high costs of traditional filings. You keep control of the business while creating a manageable repayment plan. It allows you to discharge certain liabilities and keep the doors open for your employees.
Audit asset values
Evaluate every piece of equipment and real estate the business owns. Sell off non-essential assets to pay down high-interest creditors immediately. Determining the true market value helps you negotiate better settlements with lenders and clearing these hurdles early provides a cleaner balance sheet for future investors.
Secure your professional future
Managing a legacy involves more than just hard work and grit. A skilled attorney can help clarify complicated creditor claims and can guide you in protecting your personal wealth from corporate mistakes. They can deal with the nuances of Florida bankruptcy courts to ensure you start your new chapter on solid ground. Protecting the family name requires a strategy that balances business survival with legal reality.
]]>On Behalf of Thames | Markey<![CDATA[What business owners should know about involuntary bankruptcy]]>https://www.thamesmarkey.law/?p=476182026-03-20T09:21:18Z2026-03-25T09:20:33ZMany people have never heard the term “involuntary bankruptcy.” While filing for bankruptcy isn’t something that any person or company does unless they believe it’s their best or only option for getting out from under crushing debt, the process is still usually considered “voluntary” because they initiate the filing.
So what is involuntary bankruptcy? It occurs when creditors (usually of a business rather than an individual) petition a bankruptcy court to order their debtor to file Chapter 11 or Chapter 7 bankruptcy. The court decides whether to accept or reject their petition. If it accepts it, the debtor is notified and given a deadline to respond. They have a right to object to it. In that case, all parties will end up in court. A debtor can also “convert” the petition to a voluntary bankruptcy.
When can creditors seek involuntary bankruptcy?
For creditors to successfully seek an involuntary bankruptcy, they must show that a debtor can pay their debt but is refusing or neglecting to do so. There also can’t be a dispute about the debt between the debtor and creditor.Typically, multiple creditors get together to file a petition for involuntary bankruptcy. Under the law, the current total amount owed to the creditors signing on to the petition must be “at least $21,050 more than the value of any lien on property of the debtor securing such claims held by the holders of such claims.”While a petition for involuntary bankruptcy shouldn’t come as a surprise to a business owner, it sometimes can – particularly if there hasn’t been regular communication with the creditors. It’s crucial to get experienced legal guidance before responding or taking any action that could potentially complicate the situation.]]>