Lawsuit: Dickey's Barbecue Restaurants, Inc. Lied to Franchisees

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Dickey’s Barbecue Restaurants, Inc., which sells Dickey’s Barbecue Pit franchises, has been hit with a class action by a franchisee in California claiming the company fell short on numerous promises made in its “franchise disclosure document” provided to new franchisees. Specifically, the nine-page lawsuit argues the defendant misled franchisees in its franchisee disclosure document about, among other business aspects: the costs of opening a restaurant; how much marketing and promotional support it would provide; what territories would be protected from competition; adequate employee training levels; and the cost of purchasing supplies.

The lawsuit describes a laundry list of alleged falsities the defendant purports in its franchisee disclosure document. According to the plaintiff, contrary to what it promised, the defendant did not: