CarePatrol Franchise Systems, LLC has won a legal battle against TSI Investment Group Inc. in the Court of Appeal of the State of California, Second Appellate District, Division Three (Case ID: B323525) on April 22, 2024. The dispute arose from an arbitration award concerning a franchise agreement between the two parties.
In 2018, CarePatrol and TSI entered into a Master Franchise Representative Agreement that allowed TSI to develop a CarePatrol franchise. However, after TSI terminated the agreement in November 2018, disagreements arose over the fair market value of the franchise. The independent appraiser, Strategic Value Group, LLC (SVG), valued the franchise at $390,000 but TSI refused to accept this valuation leading to arbitration.
The arbitrator determined that SVG's fair market valuation was final and binding. Consequently, on January 25, 2022, the arbitrator ruled in favor of CarePatrol awarding them approximately $320,000 in attorney fees and costs.