ATLANTA A federal appeals court this week upheld an earlier ruling in favor of Raving Brands Inc., which had been sued three years ago by franchisees of its former brand, Mama Fu's Asian House.
The franchisees had accused Raving Brands and executives Martin Sprock and Daryl Dollinger of fraud and breech of contract, among other charges. A U.S. District Court ruled in favor of Raving in February 2009. (EARLIER: Court rules for Raving in Mama Fu's suit)
“For more than three years, we have been in something of a cage match where a slew of adversaries have assembled in the ring to go up against us,” said Dollinger, president of Raving Brands.
"We have sent a message that hard-working franchisors should no longer be the punching bags for disgruntled franchisees," he added. "We feel we have delivered concepts that the majority of franchisees have turned into successful livelihoods and fast-casual contenders in their local markets.”
Raving Brands debuted the Mama Fu's concept in 2003 and sold it in 2008 to Austin-based Murphy Adams Restaurant Group, the chain’s largest franchisee.
The company has divested several other of its restaurant holdings, including Moe's Southwest Grill, Planet Smoothie, Shane’s Rib Shack and PJ’s Coffee of New Orleans
Today Raving Brands franchises the Doc Green’s Gourmet Salads and The Flying Biscuit Cafe restaurant chains as well as the Monkey Joe’s Parties and Play entertainment center concept. It also holds the international development rights to several of its original concepts, including Mama Fu’s, PJ’s Coffee and Doc Green’s.
Contact Elissa Elan at [email protected].