New franchisees sue for losses incurred before opening when chain collapses

posted on 9th November 2013

A Wellington couple who signed up to open an Original California Burrito Company franchise in the capital are seeking more than $200.000 in damages after the chain collapsed following a marital dispute between the franchisors. Two existing franchisees of the chain are still trading and are believed to be re-branding.

[Franchisee] KDC Holdings is claiming business losses of $211,586, including $158,750 it paid to Barrow and Hudson - the firm that holds the licence to the burrito chain's intellectual property - $10,000 for purchase of a scooter and the $18,975 it cost to be released from the lease on the Cuba St property.

Read more at http://www.nzherald.co.nz/b...

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