What is the name of the CEO of Dryer Vent Squad Franchising LLC who was named in the lawsuits?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
Aaron Cotton v. Dryer Vent Squad Franchising LLC, Leiby Goldberger and Curt Swanson Docket No. 3:22 cv00774, filed in the United States District Court for the Middle District of Tennessee on October 2, 2022. The plaintiff, Aaron Cotton (who is also the boyfriend of the daughter of COO Thomas J. Scott), a former franchisee of Clozetivity Franchising LLC, filed a suit against Dryer Vent Squad Franchising LLC and our CEO and COO, Leiby "Leo" Goldberger and Curt Swanson, respectively, alleging that the defendants concealed material information that they had a duty to disclose to the plaintiff and in the Dryer Vent Squad Franchise Disclosure Documents. Plaintiff brought a three-count complaint alleging fraudulent inducement and fraudulent inducement by concealment and seeking injunctive relief. On February 21, 2023, Defendants filed an answer denying the claims. Plaintiff Cotton and Defendants amicably resolved their dispute (with no money exchanging hands), and, on April 27, 2023, the Court entered an order reflecting the dismissal with prejudice of their respective claims.
Will Farris v. Dryer Vent Squad Franchising LLC, Leiby Goldberger and Curt Swanson, Case No. 22-1311-I, filed in the Chancery Court for Davidson County, Tennessee at Nashville on October 2, 2022. The plaintiff, Will Farris, a former franchisee of Dryer Vent Squad, filed a suit against Dryer Vent Squad and our CEO and COO, Leiby "Leo" Goldberger and Curt Swanson, respectively, alleging that the defendants concealed material information that they had a duty to disclose to the plaintiff and in the Dryer Vent Squad Franchise Disclosure Documents. Plaintiff brought a three-count complaint alleging fraudulent inducement, fraudulent inducement by concealment, and injunctive relief. On January 11, 2023, Defendants filed an answer denying the claims**. Plaintiff Will Farris and Defendants amicably resolved their dispute (with no money exchanging hands) and, on March 31, 2023, the Court entered an order reflecting the dismissal with prejudice of their respective claims.**
Source: Item 3 — LITIGATION (FDD pages 11–15)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, the CEO of Dryer Vent Squad Franchising LLC named in the lawsuits is Leiby "Leo" Goldberger. He is mentioned alongside Curt Swanson, who is identified as the COO, in several legal actions described in Item 3 of the FDD. These lawsuits involve allegations of concealed information in the Franchise Disclosure Documents and other claims.
Specifically, Leiby Goldberger is named as a defendant in lawsuits filed by former franchisees and related parties of Dryer Vent Squad and its affiliated companies like Clozetivity and Frost Shades. These suits often allege fraudulent inducement or concealment. Some cases were dismissed without prejudice or settled confidentially, while others resulted in settlements where the defendants, including Dryer Vent Squad, paid undisclosed amounts or specific sums like $10,000 or $20,000.
For a potential Dryer Vent Squad franchisee, this information highlights the importance of carefully reviewing the FDD and conducting thorough due diligence. Understanding the nature and resolution of past litigation involving the franchisor's principals can provide valuable insights into the potential risks and challenges associated with investing in a Dryer Vent Squad franchise. It is advisable to seek legal counsel to fully assess the implications of these lawsuits.