Legal Question in Business Law in Louisiana

Franchise fraud???

About 4 months ago I bought a Candy King Franchise, based upon the concepts of �complete turnkey business�, �extraordinary income in the vending business�, and �full time pay for part time work.� I was told Clark @ Candy King that I should make $30K/year off 20 machines. He told me that in 90 days they would be calling to offer more machines to make even more profits.

I was told that they would send an expert to Lafayette to locate my machines, and that the locations are guaranteed. They would secure �high traffic/child oriented locations�. So far we only have one location meeting that standard.

The locating company seems to think that they cannot find the locations in Lafayette to have me make profit, is high traffic/child oriented locations. They want to place my machines in scrap yards, auto-parts stores, and other adult oriented locations.

I do not feel that I got what I paid for and offered to return the machines at my expense to the company. I even offered to sell them back at a loss. They said absolutely not. At this time I have 18 machines that are losing money. Do I have any cause of action to try and recoup some of my money, since I did not receive what I felt I was investing in?


Asked on 8/25/04, 8:29 pm

1 Answer from Attorneys
Steve LeBlanc Steve LeBlanc, Ltd., (APLC)

Re: Franchise fraud???

You probably have a breach of contract suit against them, but an attorney would have to examine the contract you signed. Are the representations you stated written in the contract, or something to the contrary, e.g., that "there are no guarantees?" I suggest you consult an attorney in Lafayette.

Read more
Answered on 8/26/04, 10:20 am


Related Questions & Answers

More Business Law questions and answers in Louisiana