# This Franchise is a Racket!

So does this translate to mean that if a franchisor claims that their franchise model is a ‘proven-money making concept’ they can be accused of a violation of RICO, when the franchisee’s business fails? RICO claims are scary. Not just because of the connotations, but also because of the damages that can be awarded if a RICO claim is proven. RICO calls for treble damages and reimbursement of attorney fees. In the Coffee Beanery case, the franchisees claimed operating losses of $325,000. If the franchisee wins, they could be awarded 3 X their operating lost and any other losses ($325,000 X 3 = \$975,000), plus their attorney fees paid!