- Front Page
- Biz Tools
A troubled Colorado franchisor has been found in British Columbia.
Scott Mitchelson and Jack Gettles paid $180,000 for area rights to Nick-N-Willy's Pizza in 2006. In their lawsuit, the developers allege that the relationship went flat when Willy's held dough which was due to Mitchelson & Gettles as compensation for servicing franchisees in their development area.
Acccording to the developers, Willy's let its registration lapse in the State of Washington, making it impossible for Mitchelson & Gettles to fulfill their development requirements. Despite the lapse, Willy's itself did sell a franchise in Washington and then failed to pay Mitchelson & Gettles their share of the franchise fee.
Mitchelson attempted to communicate with Willy's CEO Richard Weil, but Weil noted that the franchisor was involved in litigation and having a tough time financially.
When the process server tried to get to Willy's, he found the company offices "dark and unoccupied" and even visits to Weil's home in Denver proved "fruitless."
Willy's was hiding, but where?
After some searching, Willy's was exposed as a Canadian company named "World Famous Pizza Corporation" located in the more permissive clime of Vancouver, British Columbia.
On October 3, a federal judge issued a ruling. The judge sliced the franchisee-developers thinner than Willy's sausage; he noted the requirement for mandatory arbitration and dismissed the action.
In freeing Willy's, Judge Benjamin Settle observed:
[The Area Developer Agreement] explicitly requires mediation before any party may file a legal action under the agreement. Two Guys has failed to allege that they participated in mediation. Therefore, the complaint lacks a cognizible legal theory for breach of contract.
Now the pizza dispute heads to mediation, and then likely right back to court.
Two Guys Inc a/k/a Franchise Infusion Inc. v Nick-N-Willy's Franchise Company LLC & Richard Weil
|Two Guys v Nick-N-Willy COMPLAINT.pdf||554.9 KB|
|Two Guys v. Nick-N-Willy MTN TO DISMISS.pdf||96.28 KB|
|Two Guys v. Nick-N-Willy RESP TO MOTION TO DISMISS.pdf||200.19 KB|
|Two Guys Affidavit of Scott Mitchelson.pdf||424.45 KB|
|Two Guys ORDER GRANTING DISMISS 3 Oct 2011.pdf||14.64 KB|