TORONTO — Three Fresh Guys Inc., which operates five Freshii restaurants in the Greater Vancouver Area and holds an exclusive area development agreement with Freshii Inc., has filed a statement of claim against the company and several Freshii franchisees in the Vancouver area.
TFG states it signed an area development agreement with territory exclusivity and paid Freshii $165,000 at the outset of the franchise term in order to secure the exclusive rights to the Greater Vancouver Area. The claim alleges Freshii has entered into franchise agreements with other franchisees within TFG’s exclusive territory, despite representations by Freshii that a Master Franchise Agreement would be awarded to them for its exclusive territory. TFG’s exclusive territory includes the Greater Vancouver Area, Lower Mainland and the Whistler Corridor. The company is seeking to terminate any franchise agreements with other franchisees within its exclusive territory and prevent Freshii from entering any new franchise agreements in the territory.
“We regret having to take this action against Freshii as we believe in the brand,” said Paul Pelton, Three Fresh Guys CEO. “However, as alleged in the statement of claim, we believe that Freshii has acted in bad faith toward us and we need to protect our sizeable investment and ensure that we are fairly compensated for other franchisees opened in our exclusive territory.”