,Australia

Domino's responds to disgruntled franchisee's allegations

The pizza chain denied being engaged in misleading and deceptive behaviour.

Domino’s has responded to a disgruntled franchisee’s allegations, confirming that it expects to be served with Federal Court proceedings “shortly”.

“We refer you to our previous public announcements on our efforts to improve the standards of our franchisee network, a program that started two years ago. We have shared that these efforts would likely lead to some franchisees being unhappy with DPE and choosing to leave the network,” Domino’s said in a statement sent to the ASX.

“We also flagged some of those franchisees may choose, as an attempt to achieve leverage to bargain with us, to take legal action or to raise the threat of litigation through the media. This is one such case in our view. Therefore, we are disappointed, but not surprised, by this action by an Australian franchisee which we do not consider represents the relationship with our wider franchisee community.”

The Courier Mail earlier reported that Frederick Aloysius Mario White had alleged that earnings at his three Perth Domino's stores shrank after Domino's failed to mention plans to force franchisees to sell pizzas below cost at $5 in 2014 and forcing him to buy ingredients at "unreasonably high" marked-up price of about 18%.

Domino’s flatly denied White’s claims.

“The matter relates to a commercial dispute between DPE and the franchisee which has been the subject of discussions with the franchisee for some time. While DPE is disappointed that the franchisee has chosen this path of litigation, from the information available to it, DPE considers the franchisee’s claims to be without merit, and in fairness to our investors and franchisee network it is important that we defend the claims,” the chain said.

Join QSR Media Australia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The “combined” concept features the operator’s PappaRich, NeNe Chicken, Hokkaido Baked Cheese Tart and Kurimu brands.
This reliable equipment makes pebble ice – a midpoint between fast-ice and the classic flake ice. 
The sandwich chain sold almost 357,900 additional cookies in 2021 compared to 2020.
Adopting data-backed solutions can spell the difference between savings and losses.
Last December, the brand teamed up with Budgy Smuggler to create Footlong and Six-Inch swimwear.
The unmanned store chain, located in Wirye New Town, is selling about 120 kinds of products.
Founded in 2017, it already has a presence in ten countries, including the US, UK and Australia.
This was inspired by tennis player Ash Barty, who coined the feed the "unofficial dish" of the Aussie Open.
The initiative comes as Aussies increasingly search for the single-use items.
The fast food chain first tested the Beyond Meat product in August 2019.
The range is available from $55 exclusively at Budgy Smuggler stores and online.
The chain initially had a pop up in the town early last year.