The Wireless Toyz Case Has Ended Badly for the Franchisee

The case that the court had earlier dismissed and that was reversed and reinstated by the court of appeals has again ended favorably for the franchisor.

Trial began on Tuesday, and all discretionary rulings, plus several that were not discretionary, went in favor of the franchisor defendants.

By Thursday morning the court was again limiting evidence of multiple instances of false information on the point that each had to support the entire claim of fraud by itself instead of all being considered as a group of misrepresentations.

Plaintiffs (franchisee and family) had to make a decision whether to proceed and make a record for purpose of another appeal or stop the fight. They elected to stop the fight. Another successful appeal would have placed us back in the same trial court doing it all over again. The cycling of appeals, reversals and more appeals would have been endless.

The only good to come out of this is that (1) Thank God the franchisee could afford the loss and the expense; and (2) many franchisees came forward with tips and suggestions, trying to help. For the sake of reassuring those who tried to help, I never made a record of who they were or what they contributed.

This is another instance in which the plain and obvious message is that killer pre investment due diligence is truly your best protection, indeed your only practical protection, against franchise investment fraud.