Question: Wolf King and others sold business opportunities in vending machines
Wolf, King, and others sold business “opportunities” in vending machines by taking out ads in newspapers throughout the country. When individuals responded, telemarketers called "fronters" would tell them of false earnings estimates, and those who could afford $16,000 to $25,000 for vending machines were turned over to "closers" who promised wonderful results. References were provided who were "shills"- they did not own vending machines but were paid to tell "stories" that were monitored by Wolf, King, and other supervisors. None of the individuals was given franchise disclosure documents. King induced one investor to mortgage her house so that she could pay $70,000 for a number of vending machines. In three years Wolf, King, and others took in some $31.3 million. The FTC alleged that the defendants violated the FTC franchise disclosure rule. Is there a franchise disclosure rule violation if Wolf and King were merely selling vending machines? What if Wolf and King promised exclusive territories for the machines? Why would a franchise disclosure rule be necessary in this case? Decide. [FTC v. Wolf, Bus. Franchise Guide ¶ 27,655 (C.C.H. D. Fla.)]
Answer to relevant QuestionsKatherine Apostoleres owned the rights to Dunkin Donuts franchises in Brandon and Temple Terrace, Florida. The franchisor offered all its franchisees the right to renew their existing franchise agreements if they agreed to ...Goodward, a newly hired newspaper reporter for the Cape Cod News, learned that the local cranberry growers had made an agreement under which they pooled their cranberry crops each year and sold them at what they determined ...Baxter, Bigelow, Owens, and Dailey were partners in a New York City advertising agency. Owens, who was in poor health and wanted to retire, advised the partners that she had assigned her full and complete interest in the ...Ross, Marcos, and Albert are partners. Ross and Marcos each contributed $60,000 to the partnership; Albert contributed $30,000. At the end of the fiscal year, distributable profits total $150,000. Ross claims $60,000 as his ...Hurwitz and Padden practiced law as equal partners for a short period of time before converting to an LLC. Some three years later, Padden informed Hurwitz that he intended to leave the firm. When they could not agree on how ...
Post your question