In case you missed it, the California Department of Financial Protection and Innovation (DFPI) that regulates and enforces California’s franchise laws, issued an unprecedented order against Burgerim Franchising assessing more than $4 million dollars and fines and ordering full rescission and restitution to more than 1500 franchisees!
That action is believed to be the largest award from any state or federal action against a franchisor, and was profoundly influenced by the Independent Association of Burgerim Franchisees, a chapter of the AAFD, and their counsel, AAFD Franchisee LegaLine affiliate, David Levaton. The group has also been supported by Keith Miller, the AAFD Director of Public Affairs and engagement, as well as from some powerful reporting from Jonathon Maze from Restaurant Business Magazine, and Franchise Times, both of which publications worked with Miller and chapter leadership to follow the story.
While the Burgerim action offers a dramatic victory for defrauded investors, it also represents a major lesson in the power and influence that can flow from franchisees organizing and supporting an owners’ association to amalgamate their collective voice.
For detailed information on the DFPI’s Burgerim action, read the important news reports:
Restaurant Business, by Jonathon Maze: https://www.restaurantbusinessonline.com/financing/state-california-orders-burgerim-refund-franchise-fees