Krispy Kreme Doughnuts Inc. on Thursday said it terminated the license of its Southern California franchisee because the franchisee was not paying royalties and other fees.
L.A.-based Great Circle Family Foods LLC is in default of its franchise agreement for refusing to make royalty payments and contributions to a marketing and advertising fund, Krispy Kreme said in a statement. The company operates 28 Krispy Kreme outlets in Southern California.
Two principals in Great Circle, Richard Reinis and Roger Glickman, sued Krispy Kreme in September, claiming executives misappropriated marketing funds and billed them for fake charges. Reinis and Glickman also claimed that the chain was trying to force them into bankruptcy, made false representations, inflated prices and engaged in deceptive business practices.
