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CBD product producer and franchiser SunFlora has been accused of misleading commerce practices by a number of enterprise companions in Pennsylvania, in response to a new lawsuit filed in opposition to the corporate in federal court docket.
The swimsuit, filed Friday by Joseph Gradwell, Christopher Miller, Greg Muiter and Melanie Vaughan, alleges that the Florida-based firm tricked them in 2019 into signing paperwork that made them “associates” as an alternative of “franchisees,” in violation of each state and federal legislation.
Law360 reported that the quartet all agreed to run Your CBD Shops – a nationwide chain franchised by SunFlora – in western Pennsylvania, however weren’t informed that they’d be charged over-wholesale market costs for SunFlora-made merchandise, which the plaintiffs alleged erased their revenue margins.
The swimsuit additional alleges that SunFlora retaliated when the plaintiffs thought-about promoting different branded merchandise, and that the corporate threatened to terminate their franchise agreements.
The swimsuit requests unspecified damages and a court docket order declaring the franchise agreements illegal and unenforceable.
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