A new lawsuit filed in the Superior Court of California accuses a franchising corporation and its CEO of fraud and misrepresentation, sparking concerns over franchise agreements and business practices. On December 5, 2024, plaintiffs Aqeel Asghar and Muhammad Sikandar filed a complaint against Falafel Corner Franchising Corp. (FCFC) and its CEO, Sajad Shakoor, in Sacramento County.
The plaintiffs allege that they entered into franchise agreements with FCFC to operate Falafel Corner restaurants in Redding and Chico, California. According to the complaint, these agreements were based on false representations by Shakoor, who allegedly demanded substantial cash deposits totaling $80,000 before executing a formal franchise agreement on July 10, 2023. The plaintiffs further claim that they issued additional checks amounting to $137,000 for various expenses related to the Chico location at Shakoor's behest.
The complaint highlights several alleged violations of California law by FCFC and Shakoor. It claims that the defendants did not meet the necessary registration conditions for offering franchises as per California's Franchise Investment Law. Additionally, it accuses Shakoor of misrepresenting himself as a licensed contractor without holding the requisite license under state law. The plaintiffs assert that these misrepresentations led them to invest significant funds under false pretenses.
Asghar and Sikandar are seeking multiple forms of relief from the court. They request rescission of both franchise agreements with Falafel Corner due to fraudulent inducement and concealment by the defendants. The plaintiffs also demand an immediate return of all funds provided to FCFC and Shakoor, alongside special, general, and punitive damages for emotional distress caused by these alleged actions. Furthermore, they seek recovery of attorney fees and costs associated with this legal action.
The case underscores serious allegations against FCFC regarding its business practices and compliance with state laws governing franchises and contractors. It raises questions about accountability within franchising operations when legal requirements are purportedly bypassed or ignored.
Representing the plaintiffs is attorney Nilesh Choudhary from the Law Office of Nilesh Choudhary, APC. The case is being heard in front of judges at the Superior Court of California in Sacramento County under Case No.:24CV024894.