LEGAL | Staff Reporter, Australia

Guzman y Gomez facing legal action from former franchisee

Read their full statement here.

A spokesperson for Guzman y Gomez (GYG) has confirmed that they are facing legal action against a former franchisee in Kennington, Victoria.

“Guzman y Gomez takes our responsibility as a franchisor seriously and we treat our franchisees as business partners and family. Guzman y Gomez has been provided with an unsealed Supreme Court Writ regarding the former franchised restaurant in Kennington, Victoria. Guzman y Gomez are in the process of considering the claim and expect to file our defence at the appropriate time,” the statement read.

The confirmation alluded to an earlier article by the Herald Sun, who reported that former Kennington franchisee Andrew Hodgson is seeking damages against the chain after its outlet made an operating loss of $530,000 in six months, in part due to a "defective" drive-through and poor site visibility.

The writ comes months after GYG’s application for a new enterprise agreement.

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