Shakey's Facing Disgruntled Franchisees and Uncertain Future. Entrepreneur.com reports that a lawsuit instituted by a group of Shakey's franchisees in December 2002 is slotted to go to trial in Los Angeles in February, unless the parties can successfully mediate the conflict this month. The franchisees alleged fraud, breach of contract, and negligence in connection with Shakey's alleged conduct in offering franchise agreement renewals on a "take it or leave the system" basis. The Entrepreneur.com article features an article with a Shakey's franchisee who settled a similar lawsuit against the company. The franchisor's perspective will be presented next week. Shakey's is owned by the Singapore company, Inno-Pacific Holdings Ltd. For one man's review of Shakey's history and the lawsuit, click here.
Posted by franchiselawblog at October 1, 2003 08:29 PM