A group of franchisees operating Mama Fu’s units is suing Raving Brands, the Asian fast-casual chain’s parent company. The group has filed a class-action lawsuit against the franchisor and two Raving Brands executives. The franchisees are seeking undetermined damages.
The lawsuit, filed Nov. 17 in Georgia Superior Court of Fulton County, accuses Raving Brands of fraudulent financial documentation, theft by falsification and theft by taking and concealments. All these claims are considered racketeering under Georgia’s Racketeer Influenced and Corrupt Organizations (RICO) statute. The lawsuit says Raving Brands received undisclosed kickbacks from suppliers, keeping plaintiffs from seeking more competitive pricing.
“This lawsuit has no merit whatsoever,� said Steve LeMastra, president of Raving Brands.
In addition to Raving Brands and Mama Fu’s, the franchisees also are suing Martin Sprock, the company’s founder, and Daryl Dollinger, a principal shareholder. Read More
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