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NORTHERN CALIFORNIA RECORD

Tuesday, March 19, 2024

Cyclebar accused of misrepresenting franchise agreement

Law money 10

SAN FRANCISCO – Three individuals seek the rescission of a franchise agreement for an indoor cycling class studio over allegations that the initial startup cost was misrepresented to them.

Tejal Kamdar, Meera Kamdar and Jason Snyder filed a complaint on May 18 in the U.S. District Court for the Northern District of California against Cyclebar Franchising LLC, William Pryor, Heather Harris and Does 1-20 alleging that they made false reports in its application to the DBO.

According to the complaint, the plaintiffs allege that on April 29, 2015, they entered into an agreement with the defendants to open three CycleBar franchises in San Francisco with the understanding that it would cost $599,300 to open a franchise. The plaintiffs holds Cyclebar Franchising LLC, Pryor, Harris and Does 1-20 responsible because the plaintiffs allege that actual cost to open a franchise in San Francisco is more than $1 million, and that the defendants misrepresented this fact in the franchise disclosure agreement submitted to the Department of Business Oversight.

The plaintiffs seek rescission of the franchise agreement, damages in an amount that exceeds $156,900, interest at the legal rate, all legal fees and any other relief this court deems just. They are represented by Bryan W. Dillon of The Law Offices of Bryan W. Dillon in Occidental.

U.S. District Court for the Northern District of California Case number 3:16-cv-02704

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