Judge finds 3 for 1 Pizza & Wings guilty of improper disclosure

June 2, 2003

TORONTO -- A judge has found 3 for 1 Pizza & Wings Inc. in violation of Ontario's franchise law.

According to the Toronto Star, Ontario Superior Court of Justice Romain Pitt ordered the company to repay $35,000 (U.S. $25,554) to a Shiraz Ismail, who backed out of an agreement with the company over franchise disclosure concerns.

"The evidence is overwhelming that the 'franchise agreements package' was produced by the respondents for the first time during cross-examination," Pitt wrote in a ruling released June 2. "In addition, the documents were grossly deficient, a fact not seriously disputed by the respondents."

The ruling was the second this year against 3 for 1 Pizza & Wings for incomplete disclosure. In February, a judged ordered the company to pay $115,059 (U.S. $84,000) to two women who paid for a franchise they never operated. 3 for 1 President Reza Solhi told the Star his company will appeal that ruling.

In the most recent ruling, Judge Pitt held Solhi personally liable, along with his company, to repay Ismail's money. Also found liable were Farzad Bagherzadeh, manager of the 3 for 1 call center, and three companies for which he is either a president or director.

Franchise lawyer Ben Hanuka told the Star it is unusual that both judgments against 3 for 1 came after an application hearing, rather than a full trial with oral testimony.

"A trial is normally required when there are facts in dispute," said Hanuka, who did not act in either case.

Topics: Marketing

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