December 13, 2005
Papa John's Alleges Racketeering
Kentucky-based Papa John’s International, Inc. has sued a group of Chicago pizza makers, alleging that they operate as "fronts" for a terminated Papa John’s franchisee. Papa John’s terminated its franchise agreement with Antoine "Tony" Rezko in 2004. AR Pizza (alleged by Papa John’s to stand for "Antoine Rezko") and Newco Pizza (yes, somebody actually named their new company "Newco") were incorporated shortly after the Rezko termination.
Papa John’s alleges that AR Pizza, Newco Pizza and another entity, LayaZia, LLC and certain of their principals use Papa John’s intellectual property while operating under names including "Papa Tony’s" and "Pizzeria Zia." The federal court complaint alleges, among other things, racketeering, trademark infringement and unfair competition. Mr. Rezko is not a defendant in the suit. An attorney for Mr. Rezko, Gene Murphy, stated, "This is a squeeze play on Papa John’s part to eliminate the competition."