Sandeep Mand and her STK Triple Holdings Ltd. are suing Megabite for $195,000 plus other costs. Mand believes the 11-outlet pizza chain did not provide her with a franchise site that she could reasonably operate nor equipment that worked.
“The equipment installed in the restaurant was old and not new, was broken and not operating; with no warranties on any of it,” Mand said in her statement of claim.
“Despite assurance provided at the time by Megabite, the oven, the fryer, the cooler, the electric dough mixer, the electric panel providing power to Megabite Production Way and the air conditioner were never repaired or replaced by the defendant.”
Mand first paid Megabite $175,000 in August 2010 to buy a franchise that Megabite would build, she claims. Megabite demanded an additional $25,000 to cover further costs in January, according to the notice of civil claim.
Mand claims she felt “cornered and oppressed by the undue influence of the defendant Megabite and its principal Kubilay Demirel” so she relented and paid the pizza chain a further $20,000.
What made matters worse, according to Mand’s statement of claim, is that “Mand was subjected to constant and continuous harassment, including defaming the good character of Mand with accusations that she, or members of her staff, were stealing from the till, not entering all sales in the till computer system and-or giving away product from the restaurant.”
None of these allegations have been tested or proven in court and the defendants had not filed a statement of defence by press time.
(Update from January 2012: this lawsuit was dismissed with the consent of the plaintiff without any costs to the defendant)