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Franchisees file breach of contract suit against Jack in the Box

On Behalf of | Dec 6, 2018 | Contract Disputes |

Periods of financial unrest and differences of opinion over long-term goals can place a significant amount of stress on company owners and franchise groups in Florida and elsewhere. Similar concerns can lead to complex disputes that could leave all parties involved preparing to protect their interests through litigation. A franchise group has recently filed a lawsuit against fast food chain Jack in the Box, accusing the company of breach of contract.

According to reports, the lawsuit stems from complaints concerning the uncertain future of the Jack in the Box brand. The franchise group has accused the fast food chain of making changes during a refranchising effort that led to a substantial drop in sales. The group also claims that Jack in the Box has failed to provide the promised restitution for renovation costs associated with faulty building designs.

The franchisees claim that Jack in the Box is also being overly secretive about company finances and refuses to give them access to a recent audit of its marketing funds. This comes just over a month after the group called for the replacement of the company’s founder and CEO after controversial statements led to a substantial drop in revenue. However, Jack in the Box denies any wrongdoing and the company is reportedly preparing to defend against the lawsuit.

Breach of contract disputes can be highly disputed matters, especially when all parties involved have a great deal on the line. Those who are facing similar concerns could benefit from speaking with an attorney early on for guidance on how best to prepare for the subsequent process. An attorney can examine the circumstances a client in Florida is facing and assist him or her in pursuing the restitution deserved through the necessary channels.