A New Jersey Superior Court judge has certified a class of current and former Century 21 real estate franchisees in a lawsuit alleging breach of contract and other claims against their franchisor,
Century 21 Real Estate Corp., as well as its parent company, consumer and business services provider, Cendant Corp.
The lawsuit, filed in 2002 by attorneys from New York’s Zwerling, Schachter & Zwerling, LLP, details how Cendant misused franchisee proceeds and resources after purchasing Century 21 in 1995. Century 21 is currently owned by Cendant spin-off Realogy Corp.
On Aug. 17, New Jersey Superior Court Judge Robert J. Brennan issued the ruling certifying a nationwide class of current and former Century 21 franchisees during the period from August 1995 to April 2002, whose franchise agreements contain a New Jersey jurisdiction clause. The class is estimated to include no fewer than 1,000 franchisees, but could exceed 4,000 franchisees.
Under a Master Franchise Agreement, Century 21 franchisees were required to contribute 2 percent of their gross revenue to the central National Advertising Fund (NAF) in addition to a 6 percent franchise service fee.