DQ Sues Iowa Franchisee Over Alleged $13M Extortion Plot

February 21, 2011 by Cris | 0 Comments

Minneapolis / St. Paul Business Journal:

Dairy Queen has sued a disgruntled franchisee it says is threatening to hurt the company in a $13 million extortion scheme.

International Dairy Queen Inc. wants a federal judge to sever its ties to the operator of four Iowa stores who says he’ll go public with information that would cause $100 million in damage to the company, according to the lawsuit. The Edina-based franchisor also wants a court order to keep the man, Guy Blume of Ankeny, Iowa, from defaming the company.

Blume has not yet filed a response to the suit. His attorney denied the allegations.

In Basic Guidelines, Law & Agreements, Franchisees, Franchises, Franchising in USA and/or Canada, Franchisors, Negatives and/or Positives, News, Restaurants

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