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Franchise Law – Corporate Accountability

Making Sure Individuals As Well As Corporations Are Accountable

Dady & Gardner, P.A., franchisee attorneys have succeeded in establishing law that ensures that officers, directors and executives, as well as the corporations they work for, can be held liable.

Corporate Officer Jointly And Severally Liable

In Shipman v. Case Handyman Franchise Services, LLC, 2006 WL 1891772 (N.D. Ill. 2006), the court held that a corporate officer could be jointly and severally liable as a “control person” for a corporation’s violation of the Illinois Franchise Disclosure Act unless the officer had no knowledge of, or reasonable basis to know of, the transactions constituting the alleged violation.

Corporate Parent’s Partners Liable For Misrepresenting The Franchise

In Coady v. Sona Laser Centers (2007), an arbitrator held the franchisor’s Chairman, Jim Amos (former Chairman of Mail Boxes, Etc.); its CEO, its corporate parent and several of the corporate parent’s partners directly liable for misrepresenting the franchise opportunity to franchisees.


Best Lawyers | Best Law Firms | U.S. News & World Report | Franchise Law - Tier 1 | Minneapolis | 2023