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Log In / Register | Jun 20, 2018

Unhappy Pie Face

Three unhappy franchisees are to sue franchisor Pie Face for estimated losses of A$2 million. They claim the franchisor misled them as to operating costs and then opened competing stores in close proximity.

Prit Dutta, an IT specialist, pilot Aleks Trajceski and lawyer Tom Bulmer are claiming they were mislead by Pie Face causing them to have lost millions of dollars.

After seven or eight months when I looked at the figures, they were totally different to what Pie Face projected for us. Prit Dutta

Dutta had owned two stores with one said to be operating at a loss and the other sold back to the franchisor at a loss to the franchisee of $170,000.

The franchisor founder and chief executive Wayne Homschek argues that economic downturn and poor franchisees are at the root of the problems faced by Dutta, Trajceski and Bulmer even though it would seem they were considered worthwhile investors at the time of signing their franchise contracts.

A lawyer for the group said other Pie Face franchisees may join the case, while others await the outcome from a complaint to the Australian Competition and Consumer Commission (ACCC).

Late Show with David Letterman is said to have boosted Pie Face expansion plans in the US after it was featured. Homschek also claims to be planning openings in New Zealand and Britain.

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About Ray Borradale

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Public Profile

Over forty years experience in Small Business and more than twenty-five years in franchising operations as a franchisee and employed by three franchisors, mostly in operations.

I have dedicated more than ten years and over 15,000 hours in the pursuit of quality franchising and exposing franchisor abuse of franchisees while advocating for the introduction of franchise relationship Law and the levelling of the dispute processes between bigger business and small business.


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Franchise Operations