Doctors Express Franchisee Sues; Blames Startup Costs For Default

May 23, 2011 by Cris | 0 Comments

Sacramento Business Journal:

When Justin Prillwitz signed an agreement with Doctors Express to open an urgent-care franchise in Fair Oaks, franchise documents estimated startup costs at $466,000 to $602,000.

The clinic opened in December 2010 — but startup costs have exceeded $1 million, Prillwitz alleges in a lawsuit filed May 4 in Sacramento County Superior Court.

Higher-than expected expenses depleted his pre-opening reserve fund. His inability to pay affiliates prompted Doctors Express to declare Prillwitz in default and to terminate the franchise agreement, according to court documents.

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