Claims Of Franchise Fraud Drive Dealership's Suit

Law360 (April 12, 2019, 10:23 PM EDT) -- Rental car company Sixt's promises to franchisee Autodistributors Inc. of quick profits and deep discounts when buying cars for its fleet, as well as sophisticated software and technical support ended in a multimillion-dollar failure, according to a complaint filed by the auto retailer in California federal court.

California car sales company Autodistributors says Sixt's deception was pervasive. In a suit filed Thursday, Autodistributors argued Florida-based Sixt Franchise USA "guaranteed" that Autodistributors would make money, that Sixt would provide a "state-of-the-art" software system tailored to its needs, and that Autodistributors could buy top-of-the-line autos for its fleets at "deeply discounted prices." ...

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