if you own a restaurant and it is closing what is the legal obligation for unused gift certificates?

Question

if you own a restaurant and it is closing what is the legal obligation for unused gift certificates?

Answer

The answer depends to some extent on the terms and conditions associated with the gift certificate (if any). In general, you should issue a refund to the holder of the certificate. If you cannot locate the holder, you would have to contact the Division of Consumer Affairs and possibly deposit the money with them, unless the state treasurer grants an exemption.

Feel free to contact my office if you have any further questions.

Roman R. Fichman, Esq.

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Disclaimer: This post has been written for educational purposes only and was not meant to be legal advice and should not be construed as legal advice or be relied upon. The post may contain errors, inaccuracies and/or omissions. You should always consult an attorney admitted to practice in your jurisdiction for specific advice. This post may be deemed as Attorney Advertising.

Answer

I tend to agree with Roman, but a review of the documents and the terms and conditions, plus the age of the Certificates might change my answer. This is a response to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship.

Answer

As a Franchise Attorney I agree with the other attorney answers. The Division of Consumer Affairs is probably the best immediate contract point to pose the question. Many restaurants go out of business without even considering this issue, so congratulations. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation