In an April 1993 complaint, filed in federal district court and detailing the allegations in this case, the FTC charged the defendants with failing to disclose to potential franchisees the litigation history concerning fraud or misrepresentation and the bankruptcy history of each executive officer. The complaint also alleges that defendants made claims about the earnings that franchise buyers could expect, without having adequate support for the claims. In addition, Finklestone would be prohibited from violating the FTC's Franchise Rule in the future. The Commission vote to authorize filing was 5-0. This consent judgment is for settlement purposes only and does not constitute an admission by the defendant of a law violation.
Consent judgments have the force of law when signed by the judge.