Vancouver’s Bread Garden Urban Café chain has grown to 18 outlets from 10 locations a few years ago. But, like with all franchisors, there is no guarantee every location will thrive.
Such was the case in April 2008 when CEO Zip Dhanani decided to close an underperforming location in Richmond in which his father, Sadrudin Dhanani, had a 50% stake. Sean Anwar and Masood Anwar together held the other 50% stake. Their dispute with Dhanani has landed in B.C. Supreme Court.
The Anwar brothers allege they gave Dhanani $81,000 for a 50% stake in the Richmond location and that they want the money returned because Dhanani closed that location “without any consultation.”
The Anwars allege Dhanani “stripped and converted the assets of the company for his own enrichment.”
Dhanani told Business in Vancouver the Anwars were “ruining the sales. They were not even at the restaurant.”
He claims he gave the Anwars a “sweetheart” deal because the Bread Garden location was worth $500,000 in January 2007 when the Anwars bought their 50% stake.
“My lawyers said, ‘How can you be so stupid, giving such a fantastic deal to these fellows?’ I said, ‘Look, they are young fellows. I know when I came to Canada I didn’t have anything. Somebody gave me a break. I’d like to give them a break.’”
Just before the 2010 Winter Olympics, the Bread Garden opened new restaurants on:
(See “Resilient Bread Garden chain set for ambitious expansion” – issue 1011; March 10-16, 2009)
It opened a kiosk at the Richmond Olympic Oval that will continue to operate until November when a larger full-service location will open inside the athletic facility.