The Franchise Owner's most trusted news source

Log In / Register | May 21, 2018

Franchisee Seeks $9.5M, Alleges Roasting Plant Used Fake Representations to Defraud

A franchisee of two Roasting Plant coffee locations in the Detroit area filed a federal lawsuit last week seeking $9.5 million, alleging the franchisor failed to provide him the required-by-law state and federal disclosure documents prior to his purchase, and committed "racketeering activities" throughout its fraudulent scheme in selling franchises.

Judge Allows Racketeering Claims against Moe's Southwest

A sign of Moe's Southwest Grill in Utah
A sign on a Moe's Southwest Grill restaurant in Utah. photo/bmm

ATLANTA — A district judge has ruled that franchisees may use racketeering claims against Moe's Southwest Grill and its founder in trial. In the lawsuit, franchisees allege that the franchisor has been stealing money from them through a convoluted deceptive kickback scheme connected to its supply chain.