A franchisee who sued his franchisor for fraud learned the hard way why it’s important to read the Franchise Disclosure Document, cover to cover, before buying a franchise. The California Court of Appeals ruled against him because the disclosure document Big O gave to the franchisee before he bought contradicted each and every one of his claims.
A recent decision from a federal court in California addresses the enforceability of a general release of claims signed by former franchisees.
It should be obvious that it is never a good idea to lie to a court of law. That’s a pretty basic concept, right? Lying in court documents is called “perjury,” and it’s a crime in every State in the union. So it’s always interesting to hear a story about someone who failed to grasp this fairly simple concept — and how they got caught doing it. This time it was the Husains, longtime McDonald’s franchisees, who lied to a court in Northern California in litigation against their franchisor.