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Franchise Support – Alleged Failure to Disclose Operating Costs

A claim for rescission was advanced by a franchisee on the basis that the franchisor had failed to disclose the quantum of potential changes to operating costs based on revisions made the head lease.

We were retained to provide an expert opinion on the main financial considerations investors consider when deciding to buy a business.

Our report outlined the major factors that an investor would consider, and concluded that the changes to operating costs would have been a relatively minor consideration.

The report was used by counsel to argue that the non-disclosure was not material, and ultimately to settle the dispute.

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