Franchisees sue Papa Murphy's over excessive marketing fees

April 8, 2014

More than 20 franchisees within the Papa Murphy's system are suing the parent company, claiming they were misled about demand for the brand in their region, and alleging that the company's fees are "excessive."

According to Forbes, the franchisees who are suing collectively own more than 60 stores. They are seeking $20 million in damages from the parent company.

According to the story, in the recently filed lawsuit, the store owners claim "they're earning less and having to pay more than they were promised." They're specifically alleging lack of disclosure and excessive marketing fees.

A Papa Murphy's spokesperson told Forbes that the company has yet to review the suit.

Topics: Franchising & Growth , Operations Management , Papa Murphy's Take 'N' Bake Pizza

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