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World Gym, Inc. & Patricko, Inc. v. Pla-Fit Franchise, LLC and Twin Oaks Software Development, Inc.

Case Summary: 12-cv-11620

This case is about two operating gyms who entered into a franchise agreement to operate Planet Fitness franchises at their facilities and who allege that Pla-Fit Franchise (“PFF”) made representations to them regarding the operation of the franchises when they entered into the contract that it has not abided by.

Plaintiffs allege that Pla-Fit Franchise (the franchisor)(“PFF”) intentionally and/or negligently misrepresented the agreement to them by telling them they could continue to operate their personal training business and by leading them to believe they would not sell other franchises in the nearby area. They allege that PFF immediately put pressure on them to stop their personal training and opened up numerous other franchises in the area. This they claim defrauded them, breached the franchise agreement, and amounted to an unfair and deceptive trade practice. They also allege that PFF converted approximately $45,000 from an account with Twin Oaks Software Development (“Twin Oaks”) and that Twin Oaks breached their contract with the Plaintiffs by releasing these funds to PFF thereby engaging in an unfair business practice.

PFF has filed a Motion to Dismiss based on the fact that their contract includes an arbitration clause. Twin Oaks has also filed a Motion to Dismiss based on the fact that their contract has a choice of law and venue clause requiring the case to be tried in Connecticut. This video is of a hearing on a Motion to Dismiss filed by Twin Oaks and a Motion to Dismiss for Failure to State A Claim and to Compel Individual Arbitration filed by PFF.

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