Miami, FL commercial litigation attorney Robert Zarco talks about the types of fraud he’s seen in his practice. Encountering various types of fraud has been part of their experience. They’ve come across active fraud, where individuals deliberately misrepresent information, leading others to rely on false details and act differently. This is a straightforward case of fraud. Additionally, they’ve encountered fraud by omission or concealment, a form of passive deception where a party fails to disclose a known material fact. Awareness of this fact could lead to different actions, such as reconsidering a business relationship or making alternative decisions.

In the franchise world, a common scenario involves situations where franchisees are not provided with complete truth. Concealing crucial information or making exaggerated statements is unfortunately prevalent. Franchisors, operating at different maturity levels of their systems, may be eager to sell franchises, sometimes resorting to statements that are not entirely truthful. Ongoing efforts aim to minimize such occurrences and promote increased transparency within the franchise industry.