What was the basis for CTFSI's motion to transfer the action in the LaBarbera 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, C.T. Franchising Systems, Inc. ("CTFSI") disputed claims in the LaBarbera v. C.T. Franchising Systems, Inc. case. The plaintiff in the case alleged that 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.
CTFSI's defense was based on the assertion that its ownership of a federal trademark registration exempted it from the definition of "business opportunity." Based on this, CTFSI removed the action to federal court and filed a motion to transfer the action to the Southern District of Ohio.
The case was eventually voluntarily dismissed by the plaintiff on February 24, 2025, so the motion to transfer was not ruled upon.