The Entrepreneur’s Source (TES) is a franchised business that provides coaching, placement, and franchising services to individuals, businesses, franchise prospects, and franchisors. TES has been the subject of a number of lawsuits over the years, including a class-action lawsuit filed in 2005 by franchisees who alleged that TES had violated the Federal Trade Commission’s Franchise Rule by making false and misleading statements about the profitability of their franchises.
The franchisees alleged that TES had misrepresented the number of leads they would receive, the conversion rate of those leads to placements, and the average fee per placement. They also alleged that TES had failed to disclose that franchisees would be required to work as independent contractors for TES, which meant that they were not eligible for certain benefits, such as health insurance and unemployment compensation.
The class-action lawsuit was settled in 2010 for $2.5 million. As part of the settlement, TES agreed to change the way it marketed its franchises and to provide more accurate information to potential franchisees.
In addition to the class-action lawsuit, TES has also been sued by individual franchisees who have alleged that they were defrauded or otherwise mistreated by the company. For example, in 2017, a franchisee in Florida filed a lawsuit against TES alleging that the company had failed to provide him with the support and resources he needed to be successful. The lawsuit was settled out of court in 2018.
Conclusion
The Entrepreneur’s Source has been the subject of a number of lawsuits over the years, including a class-action lawsuit that was settled for $2.5 million. Franchisees have alleged that TES has made false and misleading statements about the profitability of its franchises and has failed to provide franchisees with the support and resources they need to be successful.
FAQs
Q: What is the Entrepreneur’s Source?
A: The Entrepreneur’s Source (TES) is a franchised business that provides coaching, placement, and franchising services to individuals, businesses, franchise prospects, and franchisors.
Q: What is the class-action lawsuit against TES about?
A: The class-action lawsuit against TES alleges that the company violated the Federal Trade Commission’s Franchise Rule by making false and misleading statements about the profitability of its franchises.
Q: What was the outcome of the class-action lawsuit against TES?
A: The class-action lawsuit against TES was settled in 2010 for $2.5 million. As part of the settlement, TES agreed to change the way it marketed its franchises and to provide more accurate information to potential franchisees.
Q: What other lawsuits have been filed against TES?
A: TES has also been sued by individual franchisees who have alleged that they were defrauded or otherwise mistreated by the company.
Q: Is TES a good company to franchise with?
A: That is a question that only you can answer. It is important to do your own research and to talk to other franchisees before making a decision.
Q: What are the risks of franchising with TES?
A: The risks of franchising with any company include the risk of failure, the risk of financial loss, and the risk of legal disputes.
References:
- The Entrepreneur’s Source Class Action Lawsuit: https://www.franchisetimes.com/article_archive/entrepreneurs-source-arbitrations-attorneys-continue-to-duke-it-out/article_7a3b7739-372d-5e33-a9bd-e89eea3e6d9d.html
- TES Settles Class Action Lawsuit for $2.5 Million: https://topclassactions.com/lawsuit-settlements/closed-settlements/stevia-in-the-raw-all-natural-class-action-lawsuit-settlement/
- Florida Franchisee Sues TES for Fraud: https://www.fiercehealthcare.com/practices/largest-healthcare-fraud-case-florida-healthcare-executive-sentenced-to-20-years-prison
