A lawsuit has been filed against the Panzerotto Pizza and Wing Machine in the Ontario Superior Court of Justice. The lawsuit charges the companies of overcharging its franchisees for advertising, order processing and supplies.
The charge was brought by the former franchisee 6323588 Canada Ltd. It alleges that the Toronto based company misrepresented fees and policies regarding product rebates. It can be added that the company was founded in 1976 and it runs nearly 50 outlet chain in Toronto.
Reacting to the charge, owners Joseph Schiavone, and his brothers Vito and Frank, denied all such allegations.
None of the allegations are true and they can’t be backed up at all,
they said in a statement. They further said that the company has had to supplement franchisees’ contributions to the advertising fund.
The franchisee company is directed by Leo Oxana, and operated an outlet on Yonge St. in mid-Toronto between January 2005 and April 2008.
The Toronto franchise lawyer Ben Hanunka has proposed to the lawsuit be certified as a class action. It asks the court to order a refund of excess profits for all franchisees, plus a $1 million award as a punishment.
Source: TheStar.com
Filed under Class Action, General Law | Tags: 6323588 Canada Ltd, class action, Overcharging Franchisees, Panzerotto Pizza and Wing Machine, product rebates | Comment Below
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