October 10, 2006
Ice Cream Franchisees Sue Over Melting Sales
Two Montreal businessmen are suing one of the country’s largest fast-food franchisors for nearly $2.5 million, claiming they were duped into buying a La Cremieri ice cream and frozen yogurt franchise. As this article in the Montreal Gazette reports, Jerome Balaramanpillai and Sintram Royce-Mayo sued MTY Tiki Ming Enterprises Inc. in the Quebec Superior Court, claiming that MTY representatives made false and misleading statements about the past and the likely future sales of the La Cremieri outlet, and that MTY also failed to disclose that it was planning to open another La Cremieri outlet only 350 feet away from the plaintiffs’ store. MTY denied the allegations and filed a counterclaim, asserting that plaintiffs’ mismanaged the franchise to the point where it is worthless.
Posted by franchiselawblog at October 10, 2006 02:31 PM