Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: Automotive care center franchisor allegedly violated New York Franchise Sales Act, (Jan 6, 2016)

By Greg Hammond, J.D.

Tilden International, Inc., a business that franchises the right to establish and operate Tilden® Your Total Car Care Centers, has allegedly violated the New York Franchise Sales Act by offering to sell a franchise before registering with the New York Office of the Attorney General; making fraudulent misrepresentations and omissions; intentionally, fraudulently and unlawfully inserting or changing the signature date on the franchise disclosure document; and misrepresenting the Tilden Franchise System franchise opportunity, according to a complaint filed yesterday in the federal district court in Brooklyn (Beery v. Tilden International, Inc., January 5, 2016).

The owner of two Tilden Your Total Car Care Centers locations alleges that Tilden and two of its owners or directors made a number of false representations concerning the franchising opportunities, including misrepresentations concerning ongoing training and operational support, business systems and collateral materials, advertising, marketing and public relations support, sources of products and services, financial statements, projected openings, and the royalty structure.

These representations, according to the franchisee, violated the New York State Franchise Sales Act. In addition, the franchisee claims that Tilden was not authorized or registered to offer or sell Tilden Inc. franchised businesses in New York because the company did not maintain a registered “offering prospectus” or franchise disclosure document with the New York State Office of the Attorney General. Lastly, the franchisee asserts that Tilden violated the New York State Franchise Sales Act by fraudulently and unlawfully inserting or changing the signature date on the supposed 2012 franchise disclosure document to March 1, 2013.

In addition to claiming violations of the New York Franchise Sales Act, the franchisee brought claims for common law fraud, negligent misrepresentation, breach of contract, and unjust enrichment. He seeks rescission of two franchisee agreements; return of all funds invested in the two franchise locations; compensatory, consequential, and punitive damages; damages for loss of the benefit of the bargain; restitution; pre-judgment and post-judgment interest; costs; and attorney fees.

The case is No. 2:16-CV-00042.

Attorneys: Charles N. Internicola (The Internicola Law Firm, P.C.) for Edward L. Beery, II.

Companies: Tilden International, Inc.

News: FranchisingDistribution NewYorkNews