MINNEAPOLIS A federal district court has ruled that Ann Arbor, Mich.-based Domino's Pizza cannot force franchisees under the terms of their existing franchise agreements to buy and install a proprietary computer system sold only by the pizza franchisor.
Instead, a judge for the District of Minnesota decided, Domino's is obligated to give franchisees the specifications for a computer system they can acquire from a variety of sources.
Domino's said it would comply with the judge’s opinion by giving specifications to any franchisees requesting them by June 30. All future contracts, including renewals, will contain revised language requiring franchisees to buy hardware and software only from Domino's or a source it approves., the company said.
"We believe that a single platform is going to provide us with a strong competitive advantage, and we intend to maintain the June 30, 2008 date for compliance," according to a statement from spokesman Tim McIntyre.
Attorney Scott Korzenowski, representing the franchisees who served as plaintiffs, said it’s arguable whether the law will allow Domino's to make this change to a franchise agreement upon renewal.