Forza Coffee Franchise Owner Sues; Alleges FTC Violations & "Churning" Scheme

 
(FranchisePick.Com)  RE:  Forza Coffee Franchise: Franchisee Alleges She Was Set Up To Fail
The term “churning” in franchising refers to the practice of a franchisor taking back unsuccessful franchise locations, then reselling them to new franchisees over and over… collecting new franchise fees and transfer fees each time.  What makes this practice so potentially insidious – and successful – is that these transactions are included in required disclosure documents as “Transfers,” not failures.  The result?  A franchise chain could, hypothetically, accurately state they’ve never had a “failure” or closed a store, despite the fact that dozens – or hundreds – of …read more