Franchisee Seeks Split From Million Air Stable

Ainonline.com:

A battle is brewing between the Million Air FBO franchising company and one of its more prominent franchisees, a group of seven Million Air FBOs owned by various companies led by Ken Allison. The FBOs, called “Jason III Aviation et al” in the lawsuits, include Million Airs in Cincinnati and Columbus, Ohio; New Orleans and Lafayette, La.; Chicago; Asheville, N.C.; and Charleston, S.C.

Million Air Interlink (MAI), the franchising company based in Houston, filed suit against Allison’s FBOs in April, claiming that they “have taken steps to stop making payments required under the franchise agreements. Defendants are also terminating, or attempting to terminate, the franchise agreements and their obligations as franchisees without the contractual right to do so. Under the agreements, defendants are obligated to participate in an insurance program designated for the benefit of the franchisor and all the franchisees. However, defendants have terminated their participation in the insurance program in breach of their contractual obligations. Furthermore… defendants are also executing a plan to compete with MAI in breach of the franchise agreements.” MAI is seeking payment for damages exceeding $5 million plus payment for other costs, such as legal expenses. Read full article.