September 29, 2006
Things at Friendly Not So Friendly?
The President and CEO of Friendly Ice Cream, John Cutter, has resigned, after leading the restaurant chain since 2003 and serving as president and COO from 1998 to 2003, this article reports. The interim acting CEO is Donald Smith, who was CEO from 1988 to 2003. Mr. Smith is also facing a pending lawsuit filed in 2003 by the chain's co-founder, 89-year-old S. Prestley Blake, accusing Mr. Smith of using a joint operating agreement for a corporate jet to funnel $3.5 million from Friendly to The Restaurant Co., another company for which Mr. Smith served as CEO. Friendly stated that there was "no connection whatsoever" between the lawsuit and Cutter's resignation.
Posted by franchiselawblog at September 29, 2006 05:44 PM