Provided by: Jennifer Kirschenbaum, Esq.
October 25, 2023
Question:
Jennifer,
I signed a management agreement and agreed to be a PC doctor. I’d like to get out of the arrangement. What can I do?
Thanks,
Dr. G
Answer:
Without seeing the management agreement I can only advise how to approach considering an exit. First, we look to what has been signed and the process for termination. Second, past the termination rights, we need to look at the impact of exit - liability and monetary impact, as well and any other intangibles. If you own the PC, your reasons for exit, what you control and own, are not only relevant, but essential for our consideration. Exiting from a management agreement often opens Pandora’s box for fees and potential damages, and open questions regarding who is responsible for what decision making, actions or omissions. We see plenty of litigation when management arrangements fail, which, of course, is best to avoid at most costs.
Let’s start with reviewing the Agreement. And, most importantly, make sure we review any management arrangement BEFORE you enter to ensure you and your license are protected.
I signed a management agreement and agreed to be a PC doctor. I’d like to get out of the arrangement. What can I do?
Thanks,
Dr. G
Answer:
Without seeing the management agreement I can only advise how to approach considering an exit. First, we look to what has been signed and the process for termination. Second, past the termination rights, we need to look at the impact of exit - liability and monetary impact, as well and any other intangibles. If you own the PC, your reasons for exit, what you control and own, are not only relevant, but essential for our consideration. Exiting from a management agreement often opens Pandora’s box for fees and potential damages, and open questions regarding who is responsible for what decision making, actions or omissions. We see plenty of litigation when management arrangements fail, which, of course, is best to avoid at most costs.
Let’s start with reviewing the Agreement. And, most importantly, make sure we review any management arrangement BEFORE you enter to ensure you and your license are protected.
