Now, about those franchise costs …

The Schneiders allege that Defendant assured them, through a pamphlet provided by a sales representative, that the estimated start-up costs for a Super Suppers franchise was approximately $65,000.00. ld. at ¶¶ 30-31, Exh. A. Later, Plaintiffs were informed by CEO of Super Suppers, Bill Byrd, that the start-up cost would be between $60,000.00 and $80,000.00. ld. at ¶ 36. The UFOC provided to the Schneiders by Defendant estimated start-up cost at $72,200.00 — $107,700.00. CompI. [DE-I] Exh. B, p. 6. Despite the varying estimates as to cost, Plaintiffs signed the Franchise Agreement in June 2005, with plans to open their Super Suppers franchise in Raleigh, North Carolina, after paying Defendants the initial franchise fee of $20,000.00. ld. at ¶¶ 37-38. On January 27,2006, Plaintiffs assigned all their rights and obligations under the Franchise Agreement to Tuscan Downs, Inc., the couple’s corporate operating entity via a Release and Transfer Consent Agreement. ld. at ¶ 41; Mot. to Dismiss [DE-14], Exh. A.

Plaintiffs allege in their Complaint that their ultimate start-up costs were $221,000.00, an amount they allege is substantially higher than any estimate they were provided by the Franchisor. ld. at ¶ 44. Throughout their Complaint, Plaintiffs also allege other, various misrepresentations by Defendant. Plaintiffs allege that these misrepresentations led to the unavoidable closing of their Raleigh Super Suppers franchise in September 2007. ld. at ¶ 83.

 

TUSCAN DOWNS, INC. v. THE CULINARY SCHOOL OF FORT WORTH, LLC

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One Response to “Now, about those franchise costs …”

  • You forgot....:

    You sort of missed a key fact – when you read the summary of the case included on the linked page- it was dismissed for improper venue. Not that it doesn’t have merit, but wrong place and wrong time.

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