LEGAL | Staff Reporter, Australia

Domino's responds to franchisee's allegations of ‘misleading and deceptive conduct'

Read the full statement here.

Domino’s has released a statement following the Australian Financial Review’s report about one of their franchisees suing the pizza company in federal court due to “misleading and deceptive conduct.”

According to the report, Tim Yervantian is looking for AU$6 million as compensation for losses and damages. He said that he was promised that his first store would generate AU$100,000 a week, but instead got AU$34,000.

See Domino’s response from their secretary Craig Ryan below:

“Domino’s Pizza Enterprises Limited (the Company) notes the article in the Australian Financial Review today regarding claims made by a franchisee.

The matter relates to a commercial dispute between the Company and the franchisee which have been the subject of discussions with the franchisee for some time. The Company has not been served with the formal legal proceedings referred to in the article but is aware of the general nature of the claims. The Company rejects those claims and will defend the proceedings.

The Company would further like to add that, subject to discrete contractual exclusions, during the period of the sub-franchise agreement neither Domino’s corporate stores, nor other Domino’s franchisees, may open another store in that territory. This provides franchisees certainty about their investment as the number of households in their territory cannot, without the franchisee’s agreement, be decreased throughout this term.”

(Photo credit: Domino's Facebook)

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