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Friday, June 29, 2007

Franchisee files suit against Fujiya

MITO, Ibaraki Pref. (Kyodo) A franchisee for Fujiya Co. in Ibaraki Prefecture has filed a lawsuit against the major confectioner, seeking 426 million yen in compensation for the closure of four outlets due to the franchiser's production halt over its use of expired ingredients in cake products.

According to the damages suit filed with the Tokyo District Court, Aomiya, based in Tsukuba, closed four stores when Fujiya stopped selling cake products in January.

Two of the four reopened in late March but were subsequently closed down again because they failed to recover sales.

Aomiya sought compensation from Fujiya, but the confectioner terminated its contract with the franchisee over its failed royalty payments.

It is the first suit filed by a franchisee since the scandal broke in January, according to Fujiya.

For related stories:
Skeptical shareholders get apology from Fujiya
Fujiya descends into 8 billion yen net loss
Lawson, 330 other stores restock Fujiya sweets

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Article 8 of 8 in Business news

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