Coffee Franchise Guide

(FranchisePick.Com)  RE:  Forza Coffee Franchise: Franchisee Alleges She Was Set Up To Fail

The term "churning" in franchising refers to the practice of a franchisor taking back unsuccessful franchise locations, then reselling them to new franchisees over and over… collecting new franchise fees and transfer fees each time.  What makes this practice so potentially insidious - and successful - is that these transactions are included in required disclosure documents as "Transfers," not failures.  The result?  A franchise chain could, hypothetically, accurately state they’ve never had a "failure" or closed a store, despite the fact that dozens - or hundreds - of franchisees have lost their investments.

That’s one of the claims in a lawsuit against Forza Coffee by Forza Coffee franchise owner, reported at UnhappyFranchisee.com.

(UnhappyFranchisee.com)  Forza Coffee franchise owner Sheri Lynn Tanson recently filed a lawsuit against Forza Coffee Company and franchisor Brad Carpenter.  Tanson, whose Forza Coffee franchise was open less than a year before closing down, alleges in her suit not only that Forza Coffee sold the franchise using misleading and incomplete disclosure documents, but did so as part of a scheme known to industry insiders as "churning." [Read on: Forza Coffee Franchise: Franchisee Alleges She Was Set Up To Fail]

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