Jury Nails Francorp Founder on All Counts, Including Fraud

Don Boroian, president of Francorp, testifies in January about buying franchises from new franchisor creation Palm Tree Computers. source/YouTube

MIAMI – On Friday, October 9, just prior to midnight, a Miami jury reached a verdict in favor of five South Beach master franchisees on all nine counts against Donald Boroian and his Francorp  development firm. The claims included fraud, conspiracy, unfair and deceptive practices, negligent misrepresentation, and violations of state laws.  Robert Einhorn, Zarco Einhorn Salkowski & Brito, representing the franchisees said it was a total victory. “We are gratified that the jury held Donald Boroian and Francorp responsible for their deceptive and fraudulent business practices in this case.”

But the verdict could extend beyond those findings. Einhorn asserts that the jury’s decision sends a clear message to  Francorp and other franchise “packaging houses” that they will be held accountable for the preparation of false and misleading franchise documents for their clients, and that these franchising consultants cannot engage in the unauthorized practice of law. Although the unauthorized practice of law issue wasn’t a separate claim in the case, he said it was evidence that supported the negligence and the unfair and deceptive trade practices act claims.  He added, “So, there’s no official finding on it but it could be assumed that the jury concluded that by entering its verdict on everything claimed.”

In summarizing the litigation, Einhorn previously stated, "Don Boroian and his company completely stepped out of the role of being a franchise consultant to become his client's partner, her joint venturer and her legal counsel. They actively participated in a scheme to defraud my clients." South Beach’s principal, Carol (Meyers) Brothers, brought the concept to Francorp to develop its franchising program. Boroian first met Brothers in 1978, when she brought her first concept, Pop-In-Maid Service, to him, a company she later took into bankruptcy. 

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