Einbinder & Dunn, LLP, recently obtained a judgment on behalf of an area developer and franchisee of Island Ink-Jet located in New York City. Island Ink-Jet sells cartridge refills for ink jet printers. The area developer acquired rights to obtain or develop 47 Island Ink-Jet franchises. The arbitrator held that the provision of information by a franchise sales person indicating that franchisees on average made over $200,000 per year was an earnings claim. Significantly, the arbitrator did not determine the claim was false but simply determined that the franchisor violated New York law by providing such earnings information outside the UFOC.

In a District Court case in New Jersey, Einbinder & Dunn, LLP, recently obtained a judgment on behalf of a franchisee client who acquired a Lee Myles franchise. The franchisee was provided with pre-sale earnings disclosures. The court ordered full restitution of all franchisee fees as well as the operating losses suffered by the franchisee in the sum of $342,000, plus attorneys’ fees.

Einbinder & Dunn, LLP, has recently registered three new franchise systems in the State of New York and it is in the process of completing registration for an established franchised company throughout the country.

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Julie Lusthaus recently appeared on a podcast on Allbusineess.com entitled: “A Close Look at Pitfalls in the Franchise Disclosure Document”. [Click here to listen to this podcast]

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Michael Einbinder appeared on an episode of Businessweek: Weekend Edition: “Things to Know Before Buying a Franchise”. [Click here to view the video]