Great Clips, Franchisee In Unusual Legal Battle

Sacramento Business Journal:

A battle between Great Clips Inc. and a franchisee in Galt over alleged under-reporting of sales is taking the unusual route of playing out publicly in the courts.

The Minneapolis-based hair-care services company sued owners of the Galt store on Nov. 16 in federal court in Minnesota.

Great Clips alleges in the lawsuit that Khadeja Qayoumi and Ahmad Qayoumi, franchisees since February 2009, under-reported sales and failed to pay franchise fees. As a result, Great Clips has terminated its franchise agreement and wants the salon back.

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