Legal Question in Business Law in Florida

I purchased a existing franchise from a multiple franchise owner, Existing judgements on the franchise were not disclosed to me, either from the seller or the parent company, who knew of the judgement. The jugdement was used as a bargining tool on the sale prior to my purchase. The franchisor knew of the judgement and helped the buyer negotiate a better deal. All this was not disclosed to me at the closing of my purchase, and the judgement followed me and subsequently caused me to go out of business. Do I have a case against the franchisor in not disclosing the past history of the franchise.


Asked on 5/28/10, 9:48 am

2 Answers from Attorneys
Kevin B. Murphy Franchise Foundations, APC

A franchise attorney will tell you, a review of the sales documents, history and statements is necessary before giving you advice on this. Franchisors generally have high disclosure standards required by franchise laws. Most of this applies to prospective (first-time) franchise buyers. Consult with a franchise attorney for advice given your situation.

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise

Franchise Attorney

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Answered on 5/28/10, 1:46 pm
Lesly Longa Longa Law P.A.

You should consult with a business attorney and have them review your agreements regarding the franchise purchase. Prior to the purchase, your attorney should have run business reports and conducted a due diligence check. Regards,

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Answered on 5/29/10, 8:18 am


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