Pennsylvania CBD Sellers Say Franchiser Cheated Them

By Sarah Jarvis (April 5, 2022, 5:46 PM EDT) -- A group of Pennsylvania retailers selling CBD has alleged in Florida federal court that franchiser SunFlora Inc. wrongfully classified them as "affiliates," not "franchisees," in violation of state and federal law.

The plaintiffs — Joseph Gradwell, Christopher Miller, Greg Muiter and Melanie Vaughan — alleged in their Friday complaint that they entered into "affiliate" agreements with SunFlora in 2019, agreeing to operate "Your CBD Stores" in western Pennsylvania. But before signing such agreements, the plaintiffs said none of them were provided with franchise disclosure documents, as required by the Federal Trade Commission's Franchise Rule.

"In this case, SunFlora unlawfully attempted to...

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