Controlled group/fish story

[Belgarath]

Edited version - I left out a sentence in original version - inserted below in italics.

I think Blinky should have to answer this one. (This is a real situation, by the way)

You have three businesses - corporation A, B, and C. All sell catfish fillets or fish sandwiches or some such stuff. All are owned by a combination of the parents and adult children. Ownership is such that A & B are clearly a controlled group, but C is not, at least at first glance. No stock options, etc.

They have been operating a plan as a controlled group, and came to us to take over administration. We told them that they need to get an attorney's opinion as to whether C is part of a controlled group or not. If attorney says yes, fine with us! But something was mentioned which I have never encountered - these businesses are evidently franchises, and these particular franchises are only granted to an INDIVIDUAL, not to corporations. The father is granted the franchises, then somehow farms it all out to the corporations. So is it possible that this franchise arrangement when swirled together with the ownership somehow transforms it into a legitimate controlled group? (And it isn't an affiliated service group, according to client)

I'm not sure if this is something they did on porpoise, or if I'm being fed a line. But it may be a very effishient way to conduct business. If it turns out to be illegal, I'm going to whale for the carps, and perhaps a sturgeon to perform brain surgery on the appropriate people. If the attorney won't rule in their favor, it may require an act of Cod. I thought the whole situation smelt anyway.

[Blinky the 3-eyed Fish]

For personal political reasons I cannot comment on an industry that feeds off the slaughter of my brethren.

BTW, Kirk, if you read this, I think the last paragraph is better than anything I could come up with and should certainly be a nominee.

[Belgarath]

Update - In case anyone cares, the attorney concluded it wasn't a controlled group either...

[Lame Duck]

The whole set up sounds fishy to me, but it makes me hungry.