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Log In / Register | Feb 18, 2018

Franchisee Seeks $9.5M, Alleges Roasting Plant Used Fake Representations to Defraud

A franchisee of two Roasting Plant coffee locations in the Detroit area filed a federal lawsuit last week seeking $9.5 million, alleging the franchisor failed to provide him the required-by-law state and federal disclosure documents prior to his purchase, and committed "racketeering activities" throughout its fraudulent scheme in selling franchises.

Jury Awards Franchisees 80 Percent of Net Operating Losses; Curves Appeals

In a closely watched trial by many Curves fitness franchise owners across the country, a jury returned a unanimous verdict in favor of 52 qualifying franchisees, awarding them 80 percent of their net operating losses, totaling approximately $1.6 million. Curves International immediately vowed to appeal the decision.

Judge Orders Curves Franchisees to Texas, Enforces Statute of Limitations

ST. LOUIS - After 33 franchisee entities filed a 165-count complaint against Curves International alleging the franchisor made misrepresentations that induced them to buy their franchises, a federal judge dismissed 95 claims due to the statute of limitations. The remaining surviving claims were transferred to Texas, the exclusive forum agreed to when franchisees signed their franchise agreements.