The first directions hearing in the matter of a former franchisee of Kennington restaurant Guzman y Gomez versus the head company has been held in the Supreme Court of Victoria.
Andrew John Hodgson and his company are seeking damages or compensation from the Mexican restaurant chain for what they allege was unconscionable conduct and misleading representations about the Kennington outlet’s prospective profitability.
In a writ filed with the Supreme Court late last year, Mr Hodgson claimed Guzman y Gomez co-founder and executive director Robert Hazan sent him a document during discussions about franchise opportunities that said sales at the Kennington restaurant were forecast at $60,000 per week.
But between January 2018 and July 26, 2018, the restaurant allegedly operated at a loss of $530,000.
Last month, a Guzman y Gomez spokesperson said the company “takes our responsibility as a franchisor seriously and we treat our franchisees as business partners and family”.
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