Lady of America Wins Litigation

FORT LAUDERDALE, Fla.- Lady of America Franchise Corporation (LOAFC), a franchiser of fitness centers focused on women, has won a lawsuit filed against a former franchisee who claimed to have been misled when evaluating a Ladies Workout Express franchise. Jane Arcese filed suit for $250k against the Company, alleging that she was induced to enter into her franchise agreement based on misrepresentations and "earnings claims" which were contradictory to the information contained in the Uniform Franchise Offering Circular. 

United States District Court Judge, James I. Cohn, disagreed.

LOAFC successfully argued at trial that Ms. Arcese's remaining claim was without merit, and that it should be entitled to damages for Ms. Arcese's wrongful termination of the Franchise Agreement. However, Ms Arcese was ordered to pay $58,144.84, representing all future royalties through the term of her franchise agreement. The Court also ordered her to pay attorney's fees.

[via BusinessWire]