THE HOLDERS of the master franchise for Pizza Hut’s delivery services throughout Ireland have secured High Court orders preventing Pizza Hut’s US-based parent terminating the franchise agreement. The orders apply pending the outcome of full legal proceedings.
Q Co Franchising Ireland Ltd, owned and operated by brothers John and Patrick Cronin, secured the injunctions yesterday from Mr Justice Michael Hanna against Pizza Hut International LLC, with an address in Texas.
Q Co, which has more than 35 Pizza Hut delivery franchises North and South, claims the parent company is not entitled to terminate the master agreement.
Among various claims, Pizza Hut International LLC argued Q Co owed it €1 million and was not entitled to the injunctions.
Mr Justice Hanna said he was prepared to grant the injunctions on grounds including Q Co had established a fair issue to be tried between the sides concerning its claim the parent company had agreed not to seek royalty payments from its clients for a period of 12 months from December 2010 and November of this year and to waived arrears that had accrued.
The parent company, he noted, strongly disputed that claim and the dispute could only be resolved at a full hearing.
The judge also stated the balance of convenience favoured granting the injunctions. Q Co had claimed it would go out of business if the injunctions were not made, with the loss of 11 jobs.
In its full action, Q Co wants orders preventing Pizza Hut representing to franchisees of Q Co that the master franchise agreements have been terminated or granting those agreements to any other person or company.
Pizza Hut has denied any wrongdoing and claims Q Co breached the agreement by allegedly failing to make royalty payments to the parent company, failing to make payments due to Revenue and failing to ensure franchisees are complying strictly with the terms and conditions of the franchise agreements.