Consider this hypothetical: You invested your hard-earned savings into buying a franchise, and now you wish you never had. The franchise has turned out to be nothing like the success you believed it would be. Your financial records show that at this rate, you will be...
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Fraud And Misrepresentation
What’s happening with McDonald’s and Black franchise owners?
As a company, McDonald’s used to be lauded for marketing strategies to encourage Black business owners to buy into their franchise. Now, it seems like there may have been a lot of smoke and mirrors involved in their promises. A number of Black franchisees have...
Does the California Franchise Investment Law Preempt Common Law Fraud?
There has been uncertainty in the preceding years surrounding whether the California Franchise Investment Law, Cal. Corp. Code § 31000 et seq. (“CFIL”) preempts common law fraud claims. The relevant language of the CFIL provides: Except as explicitly provided in this...
If a franchise opportunity is misrepresented to a franchisee, can they get their money back?
If a franchise opportunity is misrepresented to a franchisee, can they get their money back? “If a franchise opportunity is misrepresented to me, can I get my money back?” The answer to that question, in terms of a franchise being oversold, is: assuming we can prove...