[et_pb_section fb_built=”1″ admin_label=”Page Title Section” _builder_version=”4.1″ use_background_color_gradient=”on” background_color_gradient_start=”#496372″ background_color_gradient_end=”rgba(135,158,171,0.18)” background_color_gradient_overlays_image=”on” background_image=”https://lauthinveststg.wpengine.com/wp-content/uploads/2020/03/iStock-918931148.jpg” background_position=”top_center” custom_padding=”175px||175px||false|false”][et_pb_row admin_label=”Page Title Area” _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Page Title” _builder_version=”4.1″ text_font=”||||||||” text_font_size=”18px” text_line_height=”2em” header_font=”Prata||||||||” header_font_size=”50px” header_line_height=”1.6em” header_2_font=”||||||||” text_orientation=”center” background_layout=”dark” max_width=”70%” module_alignment=”center” custom_margin=”|||” animation_style=”fade” header_font_size_tablet=”40px” header_font_size_phone=”” header_font_size_last_edited=”on|tablet”]
Case Study | Non-Compete Violation | False Fitness
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Welcome Section” _builder_version=”4.1″ custom_padding=”||57px||false|false” border_color_right=”#ffba60″ border_width_left=”70px” border_color_left=”#ffba60″][et_pb_row _builder_version=”4.1″][et_pb_column type=”4_4″ _builder_version=”4.1″][et_pb_text _builder_version=”4.1″ text_line_height=”1.8em” header_font=”Prata||||||||” header_font_size=”48px” header_3_font_size=”27px” header_3_line_height=”1.7em”]Non-Compete Violation | False Fitness
Franchises let corporations expand the reach of their business throughout the country, but sometimes the misbehavior of the franchisees can lead to disastrous results.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row column_structure=”3_5,2_5″ use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” _builder_version=”4.1″ width=”88%” max_width=”70%” custom_padding=”||0px|0px||”][et_pb_column type=”3_5″ _builder_version=”4.1″][et_pb_text _builder_version=”4.1″ text_font=”||||||||” text_font_size=”17px” text_line_height=”2em” max_width=”505px” module_alignment=”center” custom_margin=”|64px||||” custom_padding=”0px|||||” animation_direction=”left”]Lauth was contacted by a fitness conglomerate based in Massachusetts who had suspicions that their franchise, branding, and business model had been compromised by one of their franchisees, the Subject, local to the area. She claimed that she had sold her franchise to another owner and was only communicating with the new owner as a consultant, but the Client believed she still owned it, and had simply put her sister’s name on the LLC document.
[/et_pb_text][/et_pb_column][et_pb_column type=”2_5″ _builder_version=”4.1″][et_pb_image src=”https://lauthinveststg.wpengine.com/wp-content/uploads/2019/10/iStock-679305286.jpg” _builder_version=”4.1″ animation_style=”slide” animation_duration=”1400ms” hover_enabled=”0″][/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Welcome Section” _builder_version=”4.1″ background_color=”rgba(175,175,175,0.11)” custom_padding=”||57px||false|false” border_color_right=”#ffba60″ border_width_left=”70px” border_color_left=”rgba(255,186,96,0.6)”][et_pb_row _builder_version=”4.1″][et_pb_column type=”4_4″ _builder_version=”4.1″][et_pb_text _builder_version=”4.1″ text_line_height=”1.8em” header_font=”Prata||||||||” header_font_size=”48px” header_3_font_size=”27px” header_3_line_height=”1.7em”]The Investigation
Lauth reviewed court complaints and documents against the Subject, claiming that she had infringed upon a non-compete agreement that she signed when she agreed to be a franchisee.
[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row use_custom_gutter=”on” gutter_width=”2″ make_equal=”on” _builder_version=”4.1″ width=”88%” max_width=”70%” module_alignment=”center” custom_padding=”0px||18px|||”][et_pb_column type=”4_4″ _builder_version=”4.1″][et_pb_text _builder_version=”4.1″ text_font=”||||||||” text_font_size=”17px” text_line_height=”2em” max_width=”80%” module_alignment=”center” animation_direction=”left”]Lauth investigators spoke to the Client, gathered information about the fitness studio, their business model, and the branding and markings associated with the franchise. The Client wished to have an investigator infiltrate the business as a customer, document the interior of the studio, learn about the employees, and what the Subject’s involvement was in daily operations. Lauth sent in an undercover operative to speak to the Subject about membership fees and programs, but the Subject was deliberately evasive. Investigators photographed the inside of the studio and confirmed that the Subject was still heavily involved in the daily operations of the studio.
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ admin_label=”Welcome Section” _builder_version=”4.1″ custom_padding=”||2px||false|false” border_color_right=”#ffba60″ border_width_left=”70px” border_color_left=”#afafaf”][et_pb_row _builder_version=”4.1″][et_pb_column type=”4_4″ _builder_version=”4.1″][et_pb_text _builder_version=”4.1″ text_line_height=”1.8em” header_font=”Prata||||||||” header_font_size=”48px” header_3_font_size=”27px” header_3_line_height=”1.7em”]
