Client Testimonial – Bobby Vatalaro
In February 2003, Bobby and Catherine Vatalaro purchased a franchised daycare business from Legacy Academy, Inc. (“Legacy”). They did so because Legacy provided them with a Uniform Franchise Offering Circular that falsely represented existing Legacy franchisees were earning $51,267 $200,350, and $319,100 in their first, second, and third years of operation, respectively. Unfortunately, the Vatalaros never earned anything comparable to these figures and eventually learned that many other Legacy franchisees had not either. As a result, the Vatalaros, along with four other Legacy franchisees, terminated their relationship with Legacy, alleging that they had been fraudulently induced to enter into the franchise relationship.
This dispute eventually found its way to arbitration. In the arbitration, Legacy sought to recover over $4 million in future royalty fees, and the Vatalaros sought to rescind their franchise agreements for fraud and recover monetary damages. Ultimately, the arbitration panel denied Legacy’s motion for summary judgment on the Vatalaros’ claims, and after a two-week hearing, issued an award denying Legacy’s claims, rescinding the agreements between the parties, and awarding the various franchisees damages in the amount of $1,121,100, including attorneys’ fees. The Superior Court of Gwinnett County ultimately confirmed the award.
In this video, Bobby talks about his experience.