In the Cold Stone case, the franchisees are also seeking information relating
the pricing of the supplies on which the franchisor is receiving the vendor
rebates. If it turns out that the prices that vendors charge franchisees are
artificially inflated in order to allow for payment of these “kickbacks” to
the franchisor, then the franchisees no doubt will assert additional claims in
their lawsuit against Kahala. Such claims may include fraud for inadequate or
misleading disclosures in the Cold Stone FDD (if in fact information was
withheld – at this point, we don’t know who is right or wrong).
In addition to new franchises, in the next 12 months SailTime is launching
various membership types offering boaters preferred access: to a fleet and/or
a specific boat; locally and/or nationally; for power-boats and/or for sail-
boats.
