My Business Venture Violation of Franchise Laws Class Action

Federal and sometimes state laws exist that govern the process of franchising. The franchises offered by My Business Venture (MBV) include a “digital storefront,” website hosting, access to products to sell, plus the shipping of the products to customers. However, if the franchisor does not provide disclosures about the realities of the business, the franchisee has no way of evaluating whether this is a legitimate business or just a way to lose money. The parties being sued are TDS Enterprises, Inc., the legal entity behind My Business Venture (MBV), and two individuals involved with the company.

The class for this action is all persons who entered into a contract, either with MBV, between August 11, 2017 and August 10, 2020, in which the person was granted the right to engage in the business of offering, selling, or distributing goods or services, under MBV’s marketing plan or system, where the person was required to pay a direct or indirect fee.

MBV was established around January 1996 and sells franchises throughout the country. The two individuals named are Thomas Stidiron, the president/CEO, and John Helleis, the vice-president of sales. According to the complaint, MBV did not register as a franchisor as required by law.

Plaintiff Evelyn Davis wanted to own her own business. When her father died, he left her a small inheritance, which she decided to use to buy a “turnkey” business. She found MBV in an Internet search of low-priced franchises. According to the complaint MBV markets its franchises through a number of franchise websites.

MBV offers three levels of businesses—Enterprise, Premier, and Millennium. On September 17, 2019, Davis entered into an agreement for a Diamond Marketing Package with upgrades and a Starter Training Package. For this she initially paid $3,995. Later, she paid an additional $3,463, the complaint says, “in furtherance of MBV’s ‘turnkey’ franchise opportunity, under their marketing plan and support, and at the direction of MBV representatives.”

In return, she received a website, created by MBV, for the business she called E & K Wonder Goods.

The Federal Trade Commission (FTC) regulates the sale of franchises. It requires that franchisors provide prospective franchisees with a Franchise Disclosure Document (FDD). According to the complaint, “[t]he purpose of the Franchise Rule is to require franchisors to give prospective franchisees material information, including background information, on the franchisor, the costs of entering into the business, the legal obligations of the franchisor and the franchisee, statistics of franchised and company-owned outlets, and audited financial information.”

New York also has its own New York Franchise Sales Action (NYFSA). Under that law, the complaint says, “a franchisor is required to register an offering prospectus (i.e.[,] FDD) with the New York Department of Law, Bureau of Investor Protection and Securities” and provide the prospectus to prospective franchisees. Since MBV markets itself as a franchise, it should be following these rules.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

My Business Venture Violation of Franchise Laws Complaint

August 11, 2020

Federal and sometimes state laws exist that govern the process of franchising. The franchises offered by My Business Venture (MBV) include a “digital storefront,” website hosting, access to products to sell, plus the shipping of the products to customers. However, if the franchisor does not provide disclosures about the realities of the business, the franchisee has no way of evaluating whether this is a legitimate business or just a way to lose money. The parties being sued are TDS Enterprises, Inc., the legal entity behind My Business Venture (MBV), and two individuals involved with the company.

My Business Venture Violation of Franchise Laws Complaint

Case Event History

My Business Venture Violation of Franchise Laws Complaint

August 11, 2020

Federal and sometimes state laws exist that govern the process of franchising. The franchises offered by My Business Venture (MBV) include a “digital storefront,” website hosting, access to products to sell, plus the shipping of the products to customers. However, if the franchisor does not provide disclosures about the realities of the business, the franchisee has no way of evaluating whether this is a legitimate business or just a way to lose money. The parties being sued are TDS Enterprises, Inc., the legal entity behind My Business Venture (MBV), and two individuals involved with the company.

My Business Venture Violation of Franchise Laws Complaint
Tags: Did Not Make/Receive Proper Disclosures, Failure to Register or Get License for Business, Franchise-Related