October 18, 2004

Bad Ass Attitude

As reported in the Salt Lake Tribune, Bad Ass Coffee Company of Hawaii and Attitude Coffee of Canada are ending their franchise and merchandise agreements true to their respective names. In a federal lawsuit filed by Bad Ass in Utah to compel arbitration between the parties, the franchisor of Bad Ass coffee shops alleges that Attitude Coffee and its sister company, Bad Ass Enterprises ("BAE"), stopped paying royalty fees for merchandise they agreed to sell in Canada and also violated a non-compete by opening a new store. Attitude and BAE denied the allegations and insist that Bad Ass added unacceptable terms to a new agreement negotiated last spring. Based on that change, Attitude Coffee and BAE refused to sign the agreement and ended their relationship with Bad Ass. Attitude has refused to arbitrate, arguing that setting the place of a dispute resolution process before a dispute arises is contrary to Canadian law.

Posted by franchiselawblog at October 18, 2004 01:23 PM