Left with Pie on their Face
Three franchisees of the Pie Face gourmet pie chain say they plan to sue the parent company, claiming the business misled them over costs and profits.
The suit follows that of a former Billy Baxters Cafe franchisee in Adelaide in 2013, who successfully took parent company Paradise Retail to court over similar claims of misleading projections of profits.
The Pie Face trio, trio told the Australian Financial Review that actual profits from their Brisbane-based businesses were “totally different” to what Pie Face had projected.
Two of the franchisees, Prit Dutta and Aleks Trajceski have now withdrawn from the business and are expected to lodge claims in the Federal Court within the next month.
Pie Face CEO, Wayne Homscheck told the AFR that Pie Face disputes the claims and that “no misleading or inaccurate cost imformation has been provided to franchisees”.
There are currently 80 Pie Face stores across NSW, Queensland, Victoria, ACT, and Western Australia, as well as New York in the US.