Lawsuits Happen, But Here’s How To Avoid ThemFebruary 15, 2015 – In The News
Elizabeth D. Sigety was quoted in the Franchise Times article "Lawsuits Happen, But Here’s How To Avoid Them." Full text can be found in the February 15, 2015, issue, but a synopsis is below.
No one likes to spend time and money on legal battles. Here is advice on staying out of the courtroom and growing a successful franchise system.
“With the franchisors I work with, their vetting process could be very different,” says Elizabeth Sigety. “For our startup franchisor clients, my firm does free background checks. I feel it’s so important for them to do background checks on their franchisees, and it’s public information. I find they often skimp on this.”
Sigety also cautions, “don’t whisper anything under the table: that’s against the law. I’m very big on financial performance representations, Item 19s. I think you should put them in your FDD as soon as possible. Yes, it costs more legal time, it costs more money. But I think you’re preventing a big legal problem.”
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