Legacy Acad. v. Mamilove LLC

The trial court properly declined to grant the defendant's motion for a directed verdict on the plaintiff's claim for rescission of a franchise agreement, since the evidence showed that the plaintiff's officers were intentionally prevented from reading the agreement before signing it in order to conceal them from the false provisions that stated that the plaintiff had not received any representations of potential income or earning capabilities prior to signing the agreement.

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In this case involving a dispute arising from a day care center franchise agreement, a Gwinnett County jury rendered a verdict in favor of the plaintiffs, franchisee Mamilove, LLC and its officers, Michele Reymond and Lorraine Reymond collectively, “Mamilove”, and against the franchisors, Legacy Academy, Inc. and its officers, Frank and Melissa Turner collectively, “Legacy”. The superior court denied a motion for new trial filed by Legacy, and Legacy appeals from the court’s judgment on the verdict and from its order on the motion for new trial. Legacy contends that the trial court erred in rejecting its argument that Mamilove’s claims were barred as a matter of law, in denying its motion for a directed verdict on all of the claims, in excluding certain evidence, and in denying its motion for new trial. Finding no error, we affirm.

Viewed in favor of the jury’s verdict,1 the evidence presented showed the following facts. In 2001, sisters Michele and Lorraine Reymond entered into discussions with Frank and Melissa Turner about opening a Legacy Academy daycare franchise. In July 2001, the Turners gave the Reymonds a pro forma earnings claim in the form of an income and expense statement hereinafter, the “earnings claim” that was purportedly based upon the actual income and expenses of Legacy franchises that were then in operation. According to the earnings claim, a new franchisee would have approximately $260,000 in net income after the first year of operation and approximately $440,000 in net income after each of the second and third years. Relying upon the earnings claim, the Reymonds decided to open a Legacy franchise. The Turners showed the Reymonds property on Old Peachtree Road in Gwinnett County and the Reymonds agreed to build their daycare center there.

Legacy Acad. v. Mamilove LLC

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