Dickey’s Barbecue Pit franchise owners in California have filed a class action lawsuit against Dickey’s Barbecue Restaurants, Inc. alleging Fraud, Violation of the California Investment Law, and Violation of Unfair Competition Laws.
(UnhappyFranchisee.Com) Dickey’s Barbecue Pit franchise practices continue to come under fire by franchisees who are mad as hell and not going to take it anymore.
Yesterday, California Dickey’s franchisees Amy Meadows, Dawn Toff, Donna Schiano and Alfred Pena, on behalf of themselves and other California franchisees similarly situated, filed a class action lawsuit in the United States District Court, Northern District of California.
The franchisees are represented by attorneys Vincent Bartolotta, Jr., Karen Frostrom, and Rebecca Blain Morrison of San Diego-based Thorsnes Bartolotta McGuire LLP.
For those who have been following the Dickey’s Franchise Complaints we’ve been posting on Unhappy Franchisee, the main allegations will not be new:
[Image, left: Dickey’s franchisee Amy Meadows in her Grand Opening interview with the Pleasant Hills Patch.]
Plaintiff Amy Meadows purchased a Dickey’s franchise in Pleasant Hill, California.
Plaintiff Dawn Toff purchased a Dickey’s franchise in Hollister, California.
Plaintiff Donna Schiano purchased a Dickey’s franchise in San Ramon.
Plaintiff Alfred Pena purchased a Dickey’s franchise in Tracy, California.
While the entire complaint is posted below, here are their allegations against Dickey’s Barbecue Restaurants, Inc. in regard to the First Cause of Action: Fraud:
.
FIRST CAUSE OF ACTION
Fraud
20. Defendants made the following representations to Plaintiffs:
a. Conversion of a restaurant space into a Dickey’s, including payment of all opening inventory, permit fees, franchise and training fees, would total approximately $60,000.
b. Dickey’s was selling franchises in Northern California pursuant to a lawful FDD.
c. Dickey’s would provide a protected territory.
d. Dickey’s would provide an on-site evaluation prior to lease execution.
e. Dickey’s would provide pre-opening training.
f. Royalties and marketing fees would be based on the “net” sales.
g. Dickey’s provided a valid basis for estimating anticipated restaurant revenues.
h. Franchisees could use alternate suppliers so long as they suggested sources that could be objectively evaluated as reliable.
i. Franchisees could add new menu items so long as they could demonstrate that they were conducive to the Dickey’s image and standards.
j. Dickey’s operated a national marketing program and conducted promotions.
k. Dickey’s would provide accountings related to its marketing program.
l. The franchisees could purchase used equipment.
m. A senior member of Dickey’s would be present for the restaurant opening.
n. Dickey’s negotiated competitive prices at group discount rates.
21. Those representations were false as follows:
a. The cost of the build-out alone exceeded specific and written representations. This did not include opening inventory, permit fees, franchise fees or training costs.
b. The FDD contained material falsities.
c. Dickey’s did not provide a protected territory.
d. Dickey’s did not provide a pre-opening evaluation of the restaurants.
e. Dickey’s did not provide pre-opening training. Instead, they made the franchisees travel to Texas to wash dishes in their affiliates’ corporate stores.
f. Royalties and marketing fees were not calculated based on the net sales. Rather, they were calculated based on gross sales. Had they been calculated based on net sales, no royalties would ever have been due because store was never profitable.
g. Pre-contract representations created an unreasonable expectation of how much the stores would earn.
h. The Franchisees repeatedly requested a change in vendors to decrease costs and improve product quality. Each time the new vendor was either superior or equal to the existing vendor but no approval was forthcoming.
i. Plaintiffs repeatedly requested permission to offer new menu items such as BBQ chicken salad or breakfast items, all of which are offered by other
Dickey’s stores. However, Dickey’s refused each request.
j. Dickey’s did not offer a marketing program in Northern California. Those dollars were spent in Texas where they provided no benefit to the California restaurants. Dickey’s also did not provide promotions. The franchisees were on their own to come up with their own promotions on a case by case basis.
k. The franchises never received any marketing fund accountings. Dickey’s required the franchisees to purchase expensive oversized and new equipment.
m. A senior member of Dickey’s did not attend the store openings.
n. Dickey’s franchisees were forced to purchase product at over-market prices and were not permitted to source cheaper equivalent quality replacements.
22. At the time each of the above misrepresentations was made, Defendants knew or should have known of the falsity.
23. Plaintiffs relied on the representations in deciding to pay the application fee and open a Dickey’s Barbecue Pit.
24. As a result of Defendants’ bad conduct, Plaintiffs suffered injury in an amount to be proven at the time of trial.
25. Defendants committed the above-described conduct with oppression, fraud, and malice, entitling Plaintiffs to an award of punitive damages.
Read the entire complaint here, as downloaded from PACER this morning:
Meadows et al v. Dickey’s Barbecue Restaurants Inc.
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Tags: Meadows et al v. Dickey’s Barbecue Restaurants Inc., Dickey’s Barbecue Pit Class Action Lawsuit, Dickey’s class Action Lawsuit, Dickey’s franchise lawsuit, Dickey’s franchisee lawsuit, Dickey’s Barbecue Pit, Dickey’s Barbecue Pit franchise, Roland Dickey Jr., Roland Dickey, Vincent Bartolotta Jr., Karen Frostrom, Rebecca Blain Morrison, Thorsnes Bartolotta McGuire, Amy Meadows, Dawn Toff, Donna Schiano, Alfred Pena
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dickeys simi valley does not pay the repair service co.'s Barry will not pay his repair bills he thinks some one like OLE hickory should pay his bills on his smoker ole hickory has already paid for repairs why does he think he is not responsible for repairs he did not maintain his equipment BERRY owes BEST RESTAURANT SERVICE $1382.31 for repairs already performed NEXT DAY AIR of motor and fan and 2 new fan blades and a service call the day before bad business man and franchise owner shame on you
I am an ex Management level employee of Dickeys BBQ. I left as soon as I was let into the "inner circle and was privy to what was really going on.
I am available to testify or consult with pre-purchase, post-bankruptcy, or if you are under the stress of Rolands hit squad. Ignore your demand letter for "liquidated damages and get in touch with me through Unhappy Franchisee. Together we can put an end to this nonsense.
No brand should be allowed to have a cumulative failure rate over 50% (conservative).
'Concerned Ex Employee' - please give me a call, I'm one of the attorneys representing Plaintiffs in the California class action lawsuit. Call me at my San Diego office ((619) 236-9363 or email me at morrison@tbmlawyers.com. Thanks,
Rebecca Blain Morrison
Concerned Ex employee,
I am in the process of entering into an agreement to open multiple stores. I have been in a store now for 3 months and seen several things that are very alarming. 1 of the current stores performs very well. I would like to hear what you experienced could you please email so that we can discuss your experience. [redacted]
Sincerely
[We don't allow personal contact info posted in the comments. Please keep the discussion public so all can benefit. Thanks. ADMIN]
Ms. Blain I will be in touch.
Charles pay attention to the red flags. This brand has hit its peak and will implode and be bought at a bargain price by a private equity firm. Buying a multi-pack will only add to the "sold but never opened" number which is outrageous. I wish you luck with whatever you decide to do.
Concerned Ex Employee. I have a case against Dickey's. Please contact me at [redacted] so I can reach out to you. Thanks.
Concerned ex employee. Please contact me at [redacted]. I am an attorney who represents multiple franchisees of the Dickey's system mostly east of the Mississippi. Thank you.
I wanted to know what came of this lawsuit. Personally, I think this is absolutely bogus. You guys will be lucky to win anything. The nonsense that they weren't trained and nobody helped them open the store, is absurd. Especially the Hollister location. They had the owner go out there and help with the opening. They were given training with the employees on site. Marketing of any company is upto the owner and how they decide to reach out to their customers. Appearantly the only good press they got was because of the closure. The management team blamed the closure of their locations on the cost of beef, but according to the employees, they over stocked for a big event and wasted a lot of product. I have worked for 4 different franchises and not one of them filed a complaint about not being able to serve "specialty" items. do you think McDonald's lets you do that? What about letting them change vendors? No. If you think a national chain is going to change the way they do business because someone doesn't like spending money to recieved the same product the other locations get. The franchises in Southern California do not have this issue.
The only complaint that I have with Dickey's is that they let people with absolutely no restaurant experience, own a stake in their business. It's pathetic that people allow these kind people get into this for money and then sue when they figure out that they aren't cut out for the job. People blame others for their mistakes and are quick to declare their rights. Best of luck to you all and your future endeavors.
maybe you can explain why the southern California franchises do not have this issue you rant about, since you seem to know so much about it.
Funny how some of the changes that were proposed early on, are now being entered into the menu. i.e. tacos, sliders etc. why do you think that is. seems to me you have been drinking to much of Ollie's Iced Tea.
I've been to the stores in Bakersfield, Hanford and Santa Maria. That's the only reason I said Southern California. I could've left that one sentence out and it would make no difference to my arguement. They all seem to be doing just fine.
You may think it's funny, but I think your being smug and negative. You may think that suggestions fall on deaf ears, but they don't. There are many franchises who attempt different menu items but they typically use a test site to see how the customers take to the new items. If a store is failing, then they most likely won't let them introduce new items. They release the items according to how they want them made and test the products in succeeding stores. It doesn't just happen because someone thinks it's a good idea.
I've been a part of 4 different restaurant franchises and helped with many different product launches. I know a thing or two about it. My opinion isn't influenced by tea. It's based on facts. Thanks anayways.