February 2018

Franchisor's Board of Directors and Equity Investor Win Summary Judgment on Fraud Claims

United States - Washington

A franchisor’s equity investor and individual board members defended against a multi-plaintiff lawsuit in Washington state court alleging fraudulent disclosures in the franchise disclosure document and oral misrepresentations in the franchise sales process. Faegre Baker Daniels represented the equity investor and board members in this lawsuit.

The plaintiffs alleged common law fraud and negligent misrepresentation, violation of state franchise laws, and violation of a state consumer protection act. The court granted summary judgment to the franchisor’s individual board members and the equity investor.              

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