Second Cup franchisees file lawsuit against coffee chain over debt, ad fund
Posted Nov 26, 2018 10:57 am.
This article is more than 5 years old.
MONTREAL — A group of current and past Second Cup Ltd. franchisees has filed a lawsuit against the Canadian coffee chain.
The suit filed earlier this month in the Superior Court of Quebec alleges the company misused a franchisee-funded advertising reserve and forced franchisees to acquire debt to fund equipment that failed to boost sales — among other things.
None of the claims have been proven in court.
The suit stems from an original claim by one Second Cup franchisee against the company that eight other franchisees later asked to join.
Second Cup filed a document last week arguing the additional plaintiffs should be treated separately from the first claim as “each claim is extremely fact-specific.”
The coffee chain and its lawyer declined to comment.
A company spokesperson said the company does not comment on active court matters, particularly if they are at a very early stage of the proceedings.
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The Canadian Press
