Complaint Review: Discovery Point Franchising

Discovery Point Franchising took my franchisee fee, built the building but didn't check the TN regulations. The net result was I could only have 1/2 the number of students in 7 out of the 8 classrooms. They charged me Atlanta prices to buy the land and build the building in a rural area of Chattanooga. Then when I got my license from the state, they advised me that I could only have 120 students in 7 out of the 8 classfooms. Their other centers hold approximately 240.

I advised them of this and they completely ignored me. When I filed for arbitration (which was required under the franchise agreement), I found out why they ignored me. At the closing, I signed a document which transfered the franchise from me personally to my newly formed business. Burried in that document was a comprehensive release of all liability for anything (and everything) Discovery Point Franchising had done. This even got by my attorney.

To make a long story short, when I filed for arbitration, their attorney said "sorry, but you signed a release of all liability" and the arbitrator said "ok, your claims can't be considered, only the franchise claims".
The net, net was that even if I was at capacity from day one, there was no way I could make my bank payment. The bank repossesed the propert and sold it on the courthouse steps. Guess who bought it??? Discovery Point Franchising! So the propery I paid 1.8 million for, they bought from the bank for 1 million.

I have lost everything I own. I had to file bankruptcy. They even tried to take my home since I probably have 15 to $20,000 in equity in my home.

How, in this country, can a company screw up, and then ruin the person that they screwed? Where is justice for the little guy that trusted these people only to have them ruin me?

Rick
Chattanooga, Tennessee
U.S.A.