Nurse Next Door

NND alleged the franchisee breached its franchise agreements by failing to continuously operate its franchised businesses subsequent to training, wrongful termination of the franchise agreement and breach of the non competition covenants, and sought damages for unpaid royalties, lost future profits, interest, attorneys' fees, and costs, plus injunctive relief. Franchisee filed counterclaims on January 11, 2021 seeking unspecified damages for alleged breaches, overpayments for PPE, and loss of business value.

Status: On June 17, 2021, arbitrator granted a partial final award to NND on preliminary injunctive relief imposing a one-year injunction. On September 30, 2021, parties entered into a confidential settlement and nondisparagement agreement; franchisee agreed to pay NND $200,000.00 in exchange for mutual release. Arbitration dismissed with prejudice.

“the franchisee agreed to pay NND $200,000.00 in exchange for a mutual release of claims by all parties”

Commissioner alleged that Nurse Next Door violated the disclosure provisions of the Maryland Franchise Law in 2016 by directing all or a portion of the initial franchise fee paid by two Maryland franchisees into an escrow account in California and not deferring collection of those fees until pre-opening obligations were completed.

Status: On January 13, 2017, entered into a Consent Order; Commissioner concluded Section 14-230 of the Maryland Franchise Law was violated; franchise fees released to the two Maryland franchisees without limitation or condition.

“the Commissioner concluded that we violated Section 14-230 of the Maryland Franchise Law”

Franchisee alleged NND made material misrepresentations in its Franchise Disclosure Document in connection with the sale of franchises, specifically that they were fraudulently induced to enter into the franchise agreement which allegedly failed to disclose that franchisees in Florida would be unable to obtain the requisite licensure to provide skilled nursing services.

Status: NND removed the case to federal court; stayed pending resolution of NND's Washington lawsuit to compel arbitration (Cause No. 24-cv-00884-MJP, W.D. Wash. June 20, 2024). After arbitration was compelled, the Florida federal case was dismissed. Claimants refiled in arbitration (JAMS Arbitration #5460001414). NND denied allegations and filed counterclaims for breach of contract. The matter is currently in the discovery process.

“The matter is currently in the discovery process.”

Commissioner investigated franchise sales and disclosure practices in connection with certain franchises sold in 2017 and concluded that Nurse Next Door had improperly shared a New York Times article about the earnings of a California franchisee during the sales process in at least one sale, constituting an improper financial performance representation.

Status: On July 27, 2021, entered into a consent order; Nurse Next Door stipulated to the violation, ordered to desist and refrain, agreed to offer cancellation and refund of the initial franchise fee to one active franchisee who purchased in 2017, obtain franchise training, and pay a $12,500 penalty.

“which constituted an improper financial performance representation”