What was the allegation in the LaBarbera v. C.T. Franchising Systems, Inc. case involving Caring Transitions?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
LaBarbera v. C.T. Franchising Systems, Inc.; Case No. 2024-cp-26-08455 (Horry Cty. Ct. Com. Pleas Dec. 27, 2024). An individual principal of a franchisee filed an action alleging that C.T. Franchising Systems, Inc. ("CTFSI") did not comply with the South Carolina Business Opportunity Sales Act because it did not file a disclosure document with the secretary of state. The plaintiff sought a declaratory judgment voiding the franchise agreement and damages under the South Carolina Unfair Trade Practices Act. CTFSI disputed the claims on the basis that its ownership of a federal trademark registration exempted it from the definition of "business opportunity", removed the action to federal court (Case No. 4:25-cv-00477-SAL Dist. S.C.), and filed a motion to transfer the action to the Southern District of Ohio. The plaintiff voluntarily dismissed the action on February 24, 2025.
Source: Item 3 — LITIGATION (FDD pages 10–11)
What This Means (2025 FDD)
According to Caring Transitions's 2025 Franchise Disclosure Document, the case LaBarbera v. C.T. Franchising Systems, Inc. involved an allegation that C.T. Franchising Systems, Inc. did not comply with the South Carolina Business Opportunity Sales Act. The allegation stemmed from the claim that Caring Transitions did not file a disclosure document with the South Carolina Secretary of State. The case was filed on December 27, 2024, in the Horry County Court of Common Pleas.
The plaintiff in the case, an individual principal of a Caring Transitions franchisee, sought a declaratory judgment to void the franchise agreement. Additionally, the plaintiff pursued damages under the South Carolina Unfair Trade Practices Act. Caring Transitions disputed these claims, arguing that its ownership of a federal trademark registration exempted it from the definition of "business opportunity."
Caring Transitions then removed the action to federal court and filed a motion to transfer the action to the Southern District of Ohio. Ultimately, the plaintiff voluntarily dismissed the action on February 24, 2025. This dismissal concludes the legal proceedings related to this specific allegation against Caring Transitions.