Twenty-nine franchisee-plaintiffs are set to go to trial in Georgia against Mama Fu's Pan-Asian restaurant chain and
executives H. Martin Sprock, III and Daryl Dollinger charging fraud, breach of contract, breach of duty of good faith and fair
dealing, negligent misrepresentation, breach of implied contract,
violations of the Florida Franchise Act and the Robinson-Patman Act.
Franchisees are asking that the court appoint a temporary receiver to take possession of Mama Fu's franchise property. According to franchise expert Michael Seid, the information given to franchisees in Mama Fu’s disclosure documents was "false, misleading and omitted important and required information." The expert stated "It is not the purpose of a franchisee's due diligence to discover factual misrepresentation in a UFOC (now called the franchise disclosure document), franchise agreement or sales presentation. They should be entitled to rely upon their veracity."
Excerpted from BlueMauMauFranchise News.
Franchisees are asking that the court appoint a temporary receiver to take possession of Mama Fu's franchise property. According to franchise expert Michael Seid, the information given to franchisees in Mama Fu’s disclosure documents was "false, misleading and omitted important and required information." The expert stated "It is not the purpose of a franchisee's due diligence to discover factual misrepresentation in a UFOC (now called the franchise disclosure document), franchise agreement or sales presentation. They should be entitled to rely upon their veracity."
Excerpted from BlueMauMauFranchise News.
