Craig Tractenberg of Fox Rothschild. Courtesy photoAvoiding Franchisor Failures: Be Cautious and Do Your Research
On Nov. 15, 2024, the California Department of Financial Protection and Innovation issued a stop order against Anchored Tiny Homes Franchising LLC from offering franchisees. The franchisor stopped operation just months after selling close to 100 franchises during the first two quarters of 2024. This follows the FTC injunction and damage award in January 2024 against the founder of BurgerIM for $48 million for defrauding hundreds of franchisees who never were able to open a franchise. How does this happen and how can we avoid losses in the future?
December 23, 2024 at 01:02 PM
6 minute read
On Nov. 15, 2024, the California Department of Financial Protection and Innovation issued a stop order against Anchored Tiny Homes Franchising LLC from offering franchisees. The franchisor stopped operation just months after selling close to 100 franchises during the first two quarters of 2024. This follows the FTC injunction and damage award in January 2024 against the founder of BurgerIM for $48 million for defrauding hundreds of franchisees who never were able to open a franchise. How does this happen and how can we avoid losses in the future?
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