JitterSwing Sues Francorp over Unauthorized Practice of Law

Francorp advertises legal services on US Lawyers DB website

ST. CHARLES, Missouri – After a circuit court dismissed JitterSwing’s petition against Francorp, Inc., alleging that the thirty-year-old franchise development firm was engaged in the practice of law in preparing disclosure documents without being licensed in Missouri, the company is now appealing that decision. Francorp, based in Olympia Fields, Illinois, has recently been caught up in controversy and litigation over its “packaging of legal and consulting” services in helping companies franchise their businesses.

JitterSwing LLC, engaged in the dance club business, was organized and operating under Missouri law by owners Terry James and Barbara Vierdag. After they made their decision to franchise their operation, Francorp’s agent Christopher J. Conner offered them a variety of “acts and services” including the preparation of the franchise disclosure documents. As a result, they entered into a contract with Francorp for services to be rendered for approximately $45,000. All communications and transactions had been made through emails, telephone conversations and mail, according to the petition.

JitterSwing attorney Allen Kircher raised the single issue in his petition: a claim for damages against Francorp under Missouri law for engaging in the “law business” without a license in preparing franchise disclosure documents. He asserts that the lower court erred in dismissing the case based on the parties’ contract stating that Illinois law would apply in any disputes that arise out of their business agreement. In the appeal, Kircher argues that his petition did not include that contract between Francorp and JitterSwing. He states that the May 20 court ruling dismissed the case “without prejudice” pursuant to Missouri law. He explains that the practice of law in Missouri is controlled by the Missouri Supreme Court and the legislature, and that law cannot be abolished by a private contract between private parties.

As a legal explanation, Kircher explained:

The trial court erred when entering its Order/Judgment dismissing Appellant’s Petition because it was based on a contract attached to Respondent’s Motion to Dismiss in that, despite reciting that it was “without prejudice,” was a Motion for Summary Judgment that was dispositive of Appellant’s claims based on Missouri law and was a final order for purpose of appeal.

JitterSwing asserts that they are entitled to treble the amount they paid for services because Francorp is in violation of Missouri state law. Donald Boroian, founder and principle of Francorp, named as a defendant in the original case, was never successfully served and has been dismissed from the suit by order of the court.

Boroian and his firm have been engaged in another legal battle over the issue of the unauthorized practice of law. Last month, a Miami jury reached a verdict in favor of five South Beach master franchisees on all nine counts against him and his development firm, including fraud, conspiracy and deceptive practices. The franchisees have since received a judgment in the case. Although the unauthorized practice of law issue wasn’t a claim in the case, the franchisees’ attorney said that favorable rulings for the franchisees supported the negligence and the unfair and deceptive trade practices act claims.

Francorp’s attorney countered saying the court granted a directed verdict in their favor on two of the counts in the complaint, which are under Illinois’ law. He said count 10 of the complaint was for the unauthorized practice of law, a negligence per se count. Count 11 was on the Illinois unfair and deceptive trade practices count.

Francorp has recently been advertising its legal services on lawyer databases.

• Francorp Ad on LawyersDB
• Francorp Ad USLawyersDB

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