Franchisor 101: Can’t Break the Broker
By EsqSocial Corporation 28/05/21
A Minnesota federal court ruled in favor of a franchise broker on summary judgment. The court dismissed misrepresentation claims brought by a military veteran who alleged unlawful inducement to invest in a failed kickboxing business. The court held that only one of the many claimed pre-sale statements was a material statement of fact. The other statements were mere puffery or predictions of future events. The one actionable statement – that none of the franchisor’s outlets had closed – could not...
By: Lewitt Hackman