SUIT FILED AGAINST BROOKE FRANCHISING FOR FRAUD, AMONG OTHER CHARGES
Franchisee alleges that company misrepresented facts and manipulated funds
A lawsuit has been filed in U.S. District Court by Arthur C. Mann, president of IGWT Insurance Services in Tampa, Florida against Brooke Franchise Corporation, Brooke Credit Corporation and American Heritage, a Brooke affiliate. The suit alleges five counts: Fraudulent Misrepresentation (Brooke Franchise and Heritage), Negligent Misrepresentation (Brooke Franchise and Heritage), Breach of Contract (one each against Brooke Franchising and Heritage, respectively), and violation of the federal RICO Act (Brooke Franchise and Brooke Credit).
In 2005, Mann purchased two Brooke franchise agencies located in Brandon and Tampa, Florida. He agreed to operate as a Brooke franchisee for five years in exchange for services to provided by Brooke. Very simply, Mann alleges that Brooke knowingly misrepresented the annual commissions for the agencies, failed, along with Heritage, to fulfill its contractual obligations under the franchise agreement, and that Brooke Franchising exploited its relationship with its affiliate Brooke Credit by encouraging Mann to obtain financing based on knowingly false statements.
The LAAA only recently received a copy of the lawsuit and is studying the matter right now. We felt that, since some of our members are Brooke franchisees, or are considering a franchise option with Brooke or another entity, this would be of interest to them and the membership at large.
Additional Lawsuits have also been filed in Texas and California.
A copy of the Florida lawsuit can be found at the following link.
http://latinagents.com/Poster/brookesuit.pdf
SUIT FILED AGAINST BROOKE FRANCHISING
Moderators: Josh, independent guy