Two Montreal businessmen are suing one of the country’s largest fast-food franchisors for nearly $2.5 million over an ice cream and frozen yogurt shop the partners say they were misled into buying.
Jerome Balaramanpillai and Sintram Royce-Mayo of Simbal Group Ltd. are seeking $2.45 million from MTY Tiki Ming Enterprises Inc., a subsidiary of MTY Food Group Inc. of St. Laurent.
According to their Quebec Superior Court claim, MTY representatives “acted in a high-handed, malicious and reprehensible fashion and in wanton and contemptuous disregard for the plaintiffs” in getting them to buy the assets of a La Cremiere franchise operated by 9037-6096 Quebec Inc. in the downtown Promenades de la Cathedrale complex in the fall of 2004.
They say MTY vice-president Andre Casavant failed to indicate to them that sales at that outlet were on a downward trend, citing yearend sales as being $120,000, when the plaintiffs claim they subsequently discovered the revenues were $102,000.
The lawsuit states Casavant told them they would be able to increase sales up to $150,000 or more by soliciting the core businesses and clients from both the Promenades de la Cathedrale and adjacent Complexe les Ailes while assuring them the nearest competing La Cremiere would be the existing one in the nearby Eaton Centre when he knew MTY was planning to open another only 350 feet away in the Complexe in May 2005.
They also claim to have been guaranteed the equipment being purchased by the numbered company would be 100 per cent operational and in working condition. Instead, it required constant repairs due to frequent breakdowns.
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