Sadkhin Franchising Company LLC v. Stephanie Zamora and SAZ Management, LLC

District Court, E.D. New York·Decided April 29, 2026·No. 1:25-cv-01657·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ----------------------------------------------------------x SADKHIN FRANCHISING COMPANY LLC,

Plaintiff, MEMORANDUM & ORDER -against- 25-cv-1657 (NRM) (CHK) STEPHANIE ZAMORA and SAZ MANAGEMENT, LLC,

Defendants. -----------------------------------------------------------x NINA R. MORRISON, United States District Judge: Plaintiff Sadkhin Franchising Company invokes this Court’s federal question jurisdiction, pursuant to 28 U.S.C. § 1331, and supplemental jurisdiction, pursuant to 28 U.S.C § 1367, to bring this action against pro se Defendant Stephanie Zamora (“Zamora”), one of its former franchisees, and Zamora’s corporation, SAZ Management (“SAZ”) (collectively the “Defendants”). Plaintiff alleges that Zamora has misappropriated trade secrets in violation of the federal Defend Trade Secrets Act of 2016 (the “DTSA”), 18 U.S.C. § 1836 et seq., and advances related claims against Zamora under New York common law. Zamora has moved to dismiss Plaintiff’s complaint in its entirety. For the reasons outlined below, Zamora’s motion is granted in part and denied in part. BACKGROUND The following facts are drawn from Plaintiff’s complaint, ECF No. 1, and are assumed to be true for purposes of this motion. Sacerdote v. N.Y. Univ., 9 F.4th 95, 106–07 (2d Cir. 2021). Sadkhin Franchising, founded by Gabrielle Sadkhin, owns, operates, and franchises weight loss centers that utilize the “Sadkhin Method” of weight loss developed by Gregory Sadkhin. Compl. ¶¶ 11–16. Plaintiff owns the intellectual

property rights to the “Sadkhin System,” which includes, inter alia, the Sadkhin operations manual, training materials, databases, and client lists. Id. ¶¶ 17–20. Plaintiff franchises the Sadkhin System to franchisees, who gain certain limited rights to the Sadkhin intellectual property under the Sadkhin Franchising Agreement. Id. ¶ 21–23. The Sadkhin System is subject to confidentiality terms under the Sadkhin Franchising Agreement, including non-solicitation and non-

compete provisions. Id. ¶¶ 18, 24–25. The Sadkhin Franchising Agreement also provides for termination of franchisees’ rights and outlines post-termination rights and obligations of terminated franchisees, including the return of Sadkhin intellectual property to Plaintiff. Id. ¶¶ 26–30. On or about August 3, 2020, Zamora and SAZ entered into a franchise agreement with Plaintiff. Compl. ¶ 31. This relationship was troubled, and Plaintiff allegedly warned Zamora of repeated violations of the Sadkhin Franchising

Agreement. Id. ¶¶ 32–37. Eventually, on an unspecified date, Zamora purported to resign as a franchisee. Id. ¶ 38. By August 12, 2024, Plaintiff recognized Defendants’ termination as franchisees, and Daniel Radinsky, an employee of Sadkhin Franchising, asked Defendants to sign the standard paperwork provided to franchisees upon termination of their franchise. Id. ¶¶ 39–40. Plaintiff alleges that Defendants misappropriated trade secrets by surreptitiously creating and refusing to return a hard copy print out of Plaintiff’s client database and impermissibly retaining the Sadkhin Franchising operations

manual and Certified Sadkhin Therapy Practitioner diplomas. Compl. ¶¶ 36, 41–43. Plaintiff also alleges that Defendants owe approximately $13,000 in unpaid royalties pursuant to the Sadhkin Franchising Agreement. Id. ¶ 44. Defendants have allegedly refused to return these materials despite repeated requests by Plaintiff to do so. Id. ¶¶ 46–48. Plaintiff advances six causes of action against Defendants: (1) violation of the

DTSA, Compl. ¶¶ 49–65; (2) common law misappropriation of trade secrets, id. ¶¶ 66–75; (3) breach of contract, id. ¶¶ 76–86; (4) breach of the implied covenant of good faith and fair dealing, id. ¶¶ 87–94; (5) common law unfair competition, id. ¶¶ 95–104; and (6) common law conversion, id. ¶¶ 105–109. Zamora moved to dismiss the complaint on October 2, 2025. ECF No. 16. Plaintiff initially sought to strike Zamora’s motion, ECF No. 19, which the Court denied, Dkt. Order dated Oct. 20, 2025. Thereafter, Plaintiff filed its opposition to

Zamora’s motion, ECF No. 21, and Zamora filed her reply on November 7, 2025, ECF No. 22. LEGAL STANDARD Where, as here, a defendant has moved to dismiss a complaint for failure to state a claim, courts must evaluate whether the complaint pleads “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). On

the other hand, if “the allegations in a complaint, however true, could not raise a claim of entitlement to relief,” the complaint must be dismissed. Twombly, 550 U.S. at 558. Courts at this stage “must construe [the complaint] liberally, accepting all factual allegations therein as true and drawing all reasonable inferences in the plaintiff[’s] favor.” Sacerdote, 9 F.4th at 106–07. However, courts need not accept legal conclusions and “threadbare recitals of a cause of action’s elements.” Iqbal, 556

U.S. at 663. Complaints that advance only “labels and conclusions” or “a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555. A motion to dismiss filed by a pro se litigant “is to be liberally construed,” Boykin v. KeyCorp, 521 F.3d 202, 214 (2d Cir. 2008) (quoting Erickson v. Pardus, 551 U.S. 89, 94 (2007)), but is still held to the same standard as a motion to dismiss filed by a represented party, see, e.g., Wendt v. BondFactor Co. LLC, No. 16-CV-7751 (DLC), 2017 WL 3309733, at *3–4 (S.D.N.Y. Aug. 2, 2017) (applying the same general

standard motions to dismiss filed by both pro se and represented defendants); Hercsky v. Evans, No. 17-CV-4199 (JMA) (GRB), 2019 WL 1043670, at *1 (E.D.N.Y. Mar. 5, 2019) (denying a pro se motion to dismiss, despite construing the motion liberally) (adopting report and recommendation). DISCUSSION As a preliminary matter, “it is well-settled that a pro se individual may not appear on behalf of a corporation.” Barrie v. United States, No. 16-CV-1769 (ENV)

(LB), 2016 WL 2659549, at *1 (E.D.N.Y. May 9, 2016) (citing Sewell v. 1199 Nat. Ben. Fund for Health Human Servs., 303 F. App’x 902, 903 n.1 (2d Cir. 2008) and Pecarsky v. Galaxiworld.com Ltd., 249 F.3d 167, 172 (2d Cir. 2001)). In fact, corporations may not appear pro se at all and must be represented by counsel in federal court. Rowland v. Cal. Men’s Colony, Unit II Men’s Advisory Council, 506 U.S. 194, 201–02 (1993) (“It has been the law for the better part of two centuries . . . that a corporation may

appear in the federal courts only through licensed counsel.”). SAZ is not currently represented by counsel, and Zamora, a non-lawyer, may not represent her corporation.

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