After the founder of Picurro Pizza was indicted for soliciting sex from a minor, sales at Picurro Pizza shops dropped off by 40% and franchisees sued for the right to terminate their relationship based on their interpretation of the "obey all laws" clause, which usually applies to franchisees only. On September 21, the chain was sold to the Fresco Group, whose shareholders included Mr. Picurro's ex-wife. Three franchisees agreed to continue with the group and have changed their business names to Fresco Pizza.
Posted by franchiselawblog at October 6, 2005 12:22 PM