Franchisees Say Spa Co. Lied About 'No-Lose' Investment

Law360 (July 24, 2020, 7:41 PM EDT) -- Franchisees of Seva Beauty have slapped the fast-casual spa chain with a proposed class action in Illinois state court, alleging the company used a misleading sales pitch to dupe them into opening doomed businesses and bled them with exorbitant fees.

The complaint Thursday in Cook County Circuit Court aims to block Seva from collecting tens of thousands of dollars in fees from the failing businesses. Attorneys for the plaintiffs also filed an arbitration claim Friday seeking damages for franchisees, including a widower who said she was bilked out of her late husband's entire life insurance proceeds.

The franchisees said Seva has...

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