Archive - Director and Officer Liability

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April 5, 2013

Registration of Franchise Offering

Joel E. Wright and Rosemary J. Moore won the appeal of the earlier summary judgment order dismissing claims against their client in Something Sweet v. Nick-N-Willy’s. Plaintiff franchisors alleged that defendants had failed to register a franchise offering with the Director of Financial Institutions or to make material disclosures required by the Franchise Investment Protection Act (FIPA). Joel and Rosemary argued FIPA did not require dual registration and that there was no proof of a material nondisclosure, since the franchisors had consented to the changes of the franchise company’s operating methods. In the first published decision on this issue, the Court of Appeals agreed with both arguments. The Supreme Court denied plaintiff’s petition for review.

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