The donut franchise Krispy Kreme has decided to end its Great Circle Family Foods LLC license. By doing so they have defaulted on their licensing agreement, and will not be able to pay royalty fees.
As a result, Richard Reinis and Roger Glickman the partners in Great Circle have filed a lawsuit against Krispy Kreme.
The details of the lawsuit alleged by Reinis and Glickman is that the franchise company mishandled funds, sent invoices for bogus charges, and “engaged in deceptive business practices”.
However this is not the only dispute that the Krispy Kreme franchise is having, as some shareholders have even filed lawsuits due to the alleged improper accounting procedures.
To know of the best practices one must uphold in franchising is a worthwhile effort that could best give a potential franchisee a smooth flow of business operation and become successful in it. To incorporate actions or practices involving fraudulent activities, dishonesty, and deceptive methods into the system would surely destroy the business.
Posted by: Account Deleted | September 20, 2009 at 02:55 PM
This is very unfortunate! It's really disappointing to learn of funds being mishandled, fraudulent documentations and deceptive practices being done, and improper accounting procedures being conducted. Hard-earned money invested plus your time and effort will just be easily reduced to zero just because of irresponsible and bad practices. I hope these practices will not place the whole of franchising in bad light as there are still much more worthy franchises around.
Posted by: Account Deleted | September 26, 2009 at 12:51 PM