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kaufmann_david David J. Kaufmann

Franchise Broker, Independent of Its Client Franchisor, May Be Held Liable for New York Franchise Act Fraud Claims. In a stunning development, a Minnesota federal court magistrate recommended in seven cases involving the same franchisor—and the court adopted the recommendations—that a franchise broker may be held liable for New York Franchise Act fraud claims related to the broker’s franchise sales activities on behalf of franchisor I Love Kickboxing (ILKB) (The defendant franchise broker was also deemed possibly liable for violations of the Minnesota Franchise Act.) Golden Polar Bear v. FranChoice, No. 19-CV-484 (MJD/ECW) (D. Minn. 2019), report and rec. adopted, No. 19-CV-484 MJD/ECW (D. Minn. 2020); Rise Above Fitness v. FranChoice, No. 19-CV-1435 (MJD/ECW) (D. Minn. 2019), report and rec. adopted as modified, No. CV 19-1435 (MJD/ECW) (D. Minn. 2020); Johnson v. FranChoice, No. 19-CV-1417 (MJD/ECW) (D. Minn. 2019), report and rec. adopted, No. CV 19-1417 (MJD/ECW) (D. Minn. 2020); Xiaolin Li v. FranChoice, No. 19-CV-1267 (MJD/ECW) (D. Minn. 2019), report and rec. adopted, No. CV 19-1267 (MJD/ECW) (D. Minn. 2020); Hamilton v. FranChoice, No. 19-CV-1426 (MJD/ECW) (D. Minn. 2019), report and rec. adopted, No. CV 19-1426 (MJD/ECW) (D. Minn. 2020); Orange Rabbit v. Franchoice, No. 19-CV-687 (MJD/ECW) (D. Minn. 2019), report and rec. adopted, No. CV 19-687 (MJD/ECW) (D. Minn. 2020); and Hasko v. FranChoice, No. 19-CV-702 (MJD/ECW) (D. Minn. Dec. 19, 2019), report and rec. adopted, No. CV 19-702 (MJD/ECW) (D. Minn. 2020).

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