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What could result from continued inactivity in the Maritza Wulf, et al. lawsuit against Crave?

Crave Franchise · 2025 FDD

Answer from 2025 FDD Document

Caption and Court Filing Date Summary of Proceeding
Rockin'L Enterprises, 03/22/2023 The proceeding claims fraud and unfair trade practices and seeks
LLC, Justin LaGrange, to vitiate the Franchise Agreement for error and fraud, vitiate the
and Heather LaGrange Securities and Purchase Agreement for the Shreveport location
vs.
Crave Franchising, LLC, for fraud, and declare the arbitration and choice of forum
Maritza Wulf, Karl F. provisions in the Franchise Agreement null and void.
Wulf, Karin Malkiewicz, Franchisees are seeking damages, penalties, attorneys' fees and
Karl S. Wulf, Larry costs under the Louisiana Unfair Trade Practices and Consumer
Gerson, and Salvatore Protection Act. Defendants filed a Motion to Dismiss or Stay the
Rincione; Docket No. Matters pending Arbitration and a Motion to Dismiss for
93,870-A, 10th Judicial Improper Venue. There has been no activity on the court dockets
District Court, for more than five months. Continued inactivity could result in a
Natchitoches Parish, dismissal by the defendants.
Louisiana
Maritza Wulf, Karl F. 11/28/2023 This proceeding is tied to the foregoing proceeding and seeks
Wulf, Karin Torres, and compensation from Defendants by way of contribution or
Karl S. Wulf vs. Crave indemnification based on misrepresentations or breach of duty
Franchising, LLC and by Defendants in the event that a judgment is entered against
Salvatore Rincione; them in the foregoing proceeding. Defendants filed a Motion to
Docket No. 849-304, 24th Dismiss or Stay the Matters pending Arbitration and a Motion to
Judicial District Court, Dismiss for Improper Venue, which are pending. There has been
Jefferson Parish, no activity on the court dockets for more than five months.
Louisiana Continued inactivity could result in a dismissal by the defendants.

Source: Item 3 — LITIGATION (FDD pages 10–11)

What This Means (2025 FDD)

According to Crave's 2025 Franchise Disclosure Document, continued inactivity in the Maritza Wulf, et al. lawsuit could lead to a dismissal by the defendants. The lawsuit, filed on November 28, 2023, in the 24th Judicial District Court, Jefferson Parish, Louisiana, involves claims for compensation based on misrepresentations or breach of duty by Crave Franchising, LLC and Salvatore Rincione. The defendants have filed motions to dismiss or stay the matters pending arbitration, as well as a motion to dismiss for improper venue, which are currently pending. The court dockets have shown no activity for more than five months.

This information is relevant for prospective Crave franchisees as it highlights potential legal challenges and liabilities that Crave is currently facing. A dismissal of the case would be a favorable outcome for Crave, as it would eliminate the risk of a judgment against them in this particular matter. However, the possibility of dismissal depends on continued inactivity, which is not guaranteed.

It is important for potential franchisees to understand the nature of these legal proceedings and their potential impact on Crave's financial stability and reputation. While a dismissal would be a positive development, the underlying issues that led to the lawsuit, such as alleged misrepresentations or breach of duty, could still pose risks for franchisees. Prospective franchisees should conduct thorough due diligence, including consulting with legal and financial advisors, to assess the potential risks and rewards of investing in a Crave franchise.

Understanding the details of ongoing litigation is a crucial part of evaluating the stability and potential risks associated with a franchise investment. This particular case, along with the others listed in Item 3 of the FDD, provides insight into the types of disputes that Crave has faced with its franchisees and other parties. By carefully reviewing this information and asking relevant questions during the due diligence process, prospective franchisees can make more informed decisions about whether to invest in a Crave franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.