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Court Watch

By Jon Swierzewski
July 31, 2006

COO's Title Insufficient to Create Liability Under State Franchise Act

How much control does it take for an individual to be liable for alleged violations of a franchise act? In the case of Cherrington, et al v. Wild Noodles Franchise Company, LLC, et al, 2006 WL 1704301 (D. Minn., June 15, 2006), the court said that it takes more than a title to create liability.

The Cherringtons entered into an area development agreement in late 2003 that allowed and obligated them to open nine Wild Noodles locations. They signed separate franchise agreements to open two of the locations, but those stores soon failed and the other seven planned stores were never opened.

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