What counterclaims did Peter Rouillard file against Management Recruiters International, Inc.?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
s dismissed on May 6, 2021.
Management Recruiters International, Inc. v. Peter Rouillard, et al., Docket No. CV 17 885383, filed December 26, 2017 in the Court of Common Pleas, Cuyahoga County, Ohio alleging breach of contract for failure to pay royalties and national advertising fund fees. On October 22, 2018, Rouillard filed a counterclaim alleging breach of contract/constructive termination, unjust enrichment, fraudulent inducement, and defamation and stated injuries in excess of $25,000 for each count, along with declaratory judgment for unconscionability and liquidated damages.
On September 1, 2019, the parties entered into a written settlement agreement whereby Rouillard agreed to make payment to MRI a sum equal to $75,000, execute a new Franchise Agreement for a term of three years, and make supplemental royalty payments to cover costs of being in an exclusive territory of another member. The parties agreed not to disparage one another, to mutually release one another from all claims known and unknown, and to keep the settlement terms confidential, except as
Source: Item 3 — LITIGATION (FDD pages 12–14)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, Peter Rouillard filed a counterclaim against Management Recruiters International, Inc. on October 22, 2018. The original suit, filed December 26, 2017, by Management Recruiters alleged breach of contract for failure to pay royalties and national advertising fund fees.
Rouillard's counterclaim included allegations of breach of contract/constructive termination, unjust enrichment, fraudulent inducement, and defamation. For each of these counts, Rouillard claimed injuries in excess of $25,000. Additionally, Rouillard sought a declaratory judgment for unconscionability and liquidated damages.
The dispute was later resolved on September 1, 2019, through a written settlement agreement. Rouillard agreed to pay Management Recruiters $75,000, execute a new Franchise Agreement for a three-year term, and make supplemental royalty payments to cover costs related to being in another member's exclusive territory. Both parties agreed not to disparage each other, to mutually release one another from all known and unknown claims, and to maintain the confidentiality of the settlement terms, except as required by law.