Irish Pizza Hut franchisees win agreement injunction

Oct. 16, 2011

Q Co. Franchising Ireland Ltd., the master franchise for Pizza Hut's delivery services in Ireland, has won a High Court injunction preventing termination of its franchise agreement.

According to the Irish Examiner, Pizza Hut International LLC aimed to terminate the franchise agreements over a royalty payments dispute that began at the end of 2010.

Texas-based Pizza Hut International LLC has argued that Q Co. owes them for a 12-month period of royalty payments and payments due to revenue. It also claims Q Co. failed to ensure franchisees are complying strictly with the terms and conditions of their franchise agreements.

Q Co. Franchising Ireland Ltd., owned and operated by brothers John and Patrick Cronin, has more than 35 Pizza Hut delivery franchises. It denies all claims and argued that it would go out of business if the injunction was not approved.

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Topics: Financial Management , Franchising & Growth , Operations Management , Pizza Hut

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