Taking its name a little too far, a women's fitness club franchise company has been ordered to cease its illegal sales in the State of California. The California Department of Corporations has announced that the company, Why Weight Women's Total Fitness, Inc., has sold a number of franchises in California before its registration was approved. To make matters worse, the company's registration was rejected by the Department because one of its principals did not disclose a felony conviction for mail fraud or a $16.5 million judgment entered against him in connection with a different mail scheme. Another principal failed to disclose a 1997 bankruptcy.
Posted by franchiselawblog at June 28, 2004 11:54 AM