Japan Times:

A franchisee for Fujiya Co. in Ibaraki Prefecture has filed a lawsuit against the major confectioner, seeking 426 million yen in compensation for the closure of four outlets due to the franchiser’s production halt over its use of expired ingredients in cake products.

According to the damages suit filed with the Tokyo District Court, Aomiya, based in Tsukuba, closed four stores when Fujiya stopped selling cake products in January.Two of the four reopened in late March but were subsequently closed down again because they failed to recover sales.

Aomiya sought compensation from Fujiya, but the confectioner terminated its contract with the franchisee over its failed royalty payments.

 

Originally posted by Mark on June 29, 2007 in Franchise Site.

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