Doc Green’s Franchise Owners Seeing Red
February 11, 2008 by Sean Kelly
Filed under Business
(FranchisePick.Com) Franchise owners of Raving Brands franchise concept Doc Green’s are raving mad. According to the Naples News, six franchise owners are suing the Atlanta-based multi-concept franchisor for allegedly misrepresenting the success of the franchise concept and the franchise system.
In the suit, filed in federal court in Atlanta, the franchise owners allege that the concept was marketed to them in 2004 as an established brand and system, when the company, in fact, had only one company-owned location.
The Old Free Food Coupons Before The Franchise Sales Tour, again, aye?
The franchisees allege that the company created a “fraudulent scheme” to make their only restaurant appear wildly successful. How? Says Naples News: “When potential franchisees visited the company-owned Doc Green’s, the company gave out coupons for free food, ‘particularly aggressively’ so the restaurant would appear busier than it really was, according to the suit.”
The plaintiffs also allege Raving Brands failed to rave about their brand as promised, providing inadequate marketing and promotion, failing to establish a National Advertising Fund, and providing little help with business operations.
Want to SuperSize that Litigation for a Few Thousand Dollars More?
The franchise owners’ suit also alleges that Raving Brands and its executives took secret kickbacks and “charges them with 11 counts, including civil racketeering, fraud, breach of contract, negligent misrepresentation and more.”
WHAT’S UP, DOC?
ARE DOC GREEN’S FRANCHISE BLAMING THE THE FRANCHISOR FOR THEIR OWN BAD DECISIONS?
OR IS THE DOCTOR TRULY OUT ON THIS ONE? LEAVE A COMMENT. BE HEARD.
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Raving Brands CEO Martin Sprock is the Greatest, Most Generous Guy in the World
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