DICKEY’S Franchise Lawsuits

If you’re looking for information on Dickey’s franchise lawsuits, Dickey’s franchise litigation, Dickey’s class action lawsuits or related subjects, see below.  We’ve posted the contents of the Dickey’s franchise litigation section of the Dickey’s Franchise Disclosure Documents (FDD) for the past ten years.  We’ve also included a couple of lawsuits that Dickey’s didn’t disclose.

(UnhappyFranchisee.Com)  Dickey’s franchise lawsuits and litigation information are required disclosures to be included in Item 3 of the company’s FDD.

Here is a compilation of the items disclosed in the Dickey’s Franchise Disclosure Documents (FDD) for 2007-2016.

We’ve also included at least two Dickey’s franchise-related lawsuits that we did not see disclosed.

We will continue to add links to court documents and articles related to Dickey’s franchise lawsuits, so check back for updates..

Do you have knowledge and/or opinions of Dickey’s franchise lawsuits and litigation?  Corrections, updates or additions to our list? 

Please leave a comment below.

Dickey’s Lawsuit & Venue Complaint & Outcome
Dickey’s Barbecue Restaurants. Inc. v. Muhammad Afzal and Atlatic Restaurant Group. LLC. 160th Judicial District Court of Dallas County. Texas. Cause Number 09-00779. Filed January 22, 2009

Disclosed in 2009 FDD only

Complaint:  “Dickey’s alleged… that Mr. Afzal breached the terms of his Franchise Agreement by operating a barbecue-style restaurant after the termination of his Restaurant by Dickey’s.

Outcome: “This lawsuit was subsequentlv settled on February 23. 2009 upon terms which require Mr. Afzal to comply with the non-compete and non-disclosure provisions of his Franchise Agreement.”

Dickey’s Barbecue Restaurants. Inc. v. JMB Crossville. L L C Miriam Bernhard and Jerry Bernhard. 298th District Court. Dallas. County. Texas. Cause Number 09-02401. Filed March 2. 2009.

Disclosed in FDD in years 2009, 2010, 2011

Complaint:  “Dickey’s alleged… that the defendants breached the terms of the Franchise Agreement by operating a barbecue-style restaurant after the termination of JMB’s Restaurant by Dickey’s.”

Outcome:  “This lawsuit was subsequently settled upon terms which require the defendants to comply with the non-compete and nondisclosure provisions of the Franchise Agreement.”

Dickey’s Barbecue Restaurants. Inc.. v. Lira. LLC and Luiai Manaione. United States District  Court, Northern District of Texas; Cause No.: 3-10CV0300-P

Dickey’s Original Complaint was filed on February 16, 2010

 

Disclosed in FDD in years 2010, 2011

 

Dickey's Barbecue Pit

“Dickey’s Original Complaint was filed on February 16, 2010 based upon… failure by Lira, LLC, a former franchisee, and the guarantor, Luigi Mangione, to pay applicable royalty fees; make applicable contributions to the marketing fund… failure to disclose all sales records for all operations both

on site and off site and failure to allow the Dickey’s representative to inspect the restaurant premises and review accounting records.

“A Permanent Injunction was obtained on April 22, 2010 enjoining Defendants

from operating the restaurant located at 2845 E. Overland Rd., Suite 190,

Meridian, Idaho 83642, and… [from]violating the confidentiality and non-compete agreements for a period of two (2) years following the termination of the franchise agreement on January 19, 2010…”

NOTE:  DBRI never disclosed outcome of its request for damages and fees

Dickey’s Barbecue Restaurants. Inc. v. Surfing Gator. L.L.C. and David E. Detrick, Justice Court Precinct 3, Place 3, Dallas County, Texas; Cause No.: JC-10-01010N. Filed on December 17, 2010

 

Disclosed in 2012 FDD only

“Dickey’s filed its complaint against Surfing Gator, L.L.C. and David E. Detrick, former franchisee, on December 17, 2010 for past-due monthly royalty payments and advertising fund payments in the amount of $1,039.64 and to collect the unpaid balance on a promissory note in the amount of $6,146.85.”

Outcome:  “On April 28, 2011,· a default judgment was entered in favor of Dickey’s against David E. Detrick   in the principal amount of $7,186.49, $2,000.00 in attorney’s fees, and post-judgment interest at 5%.”

Dickey’s Barbecue Restaurants, Inc. v. David H. Chen, 416th Judicial Court of Collin County, Texas; Cause No. 416-2505-2011. Filed on June 13, 2011

 

Disclosed in 2012 FDD only

“Dickey’s original complaint was filed on June 13, 2011 against David H. Chen, a former franchisee, for breach of the franchise agreement relating to the  Corsicana, Texas restaurant operated by Mr. Chen.

Outcome:  “On September 27, 2011, a judgment was entered in favor of Dickey’s against Mr. Chen for $227,041.67 in compensatory damages, plus $3,150 in attorney’s fees  and  post-judgment interest.”

Dickey’s  Barbecue  Restaurants,  Inc.  v. GEM Investment  Group, L.L.C.,  James  Slopak  and Cheryl L. Porler-Slopak, United States District Court, Northern District of Texas,  Dallas Division, Civil Action No. 3:11-CV-2804-L. Filed on October 19, 2011.

Disclosed in 2012 FDD only

Read:

MEMORANDUM & ORDER Dickey’s Barbecue Restaurants, Inc. v. GEM Investment Group, L.L.C.

“Dickey’s original complaint and request for an injunction was filed on October 19, 2011. Dickey’s sought liquidated damages as a result of defendants’  breach of  the franchise agreement and further sought an injunction preventing  the defendant from operating their restaurant under a different name.

Outcome:  “On April 18, 2012, the court denied Dickey’s motion for injunctive relief.   On June 7, 2012, the parties settled the litigation pursuant to which the franchise agreement was terminated, and defendants paid Dickey’s a settlement payment of  $5,000….”

Dickey’s Barbecue Restaurants. Inc. v. Joseph J. Mathieu, United States District Court for the Northern District of Texas, Dallas Division, Civil Action No. 3:12-cv-05119-G. Filed December 14, 2012

 

Disclosed in 2013 FDD only

Read Dickey’s – Mathieu settlement agreement:

Dickey’s Barbecue Restaurants. Inc. v. Joseph J. Mathieu Settlement Agreement

Dickey’s filed its complaint against Joseph J. Mathieu, former franchisee, on December 14, 2012 for failure to operate his Dickey’s Barbecue Pit restaurant in compliance with Dickey’s system standards in breach of  his obligations under the franchise agreement and for breach of contract and fraudulent inducement related to a termination and release agreement negotiated by Dickey’s and Mathieu.

Outcome:  Mathieu’s Motion to Dismiss and Dickey’s response are pending before the Court as of the Issuance Date.

[NOTE: while DBRI does not appear to have disclosed the settlement agreement, court documents indicate Defendant Mathieu paid a settlement payment of $25,000]

Dickey’s Barbecue Restaurants, Inc. v. Eric R. Mulkey, No. 3:13-cv-04722-N (N.D. Tx, 2013).8

N SBB1 1381786 v5

2924451-000016 08/27/2014

Disclosed in 2014 FDD only

Dickey’s Barbecue Restaurants, Inc. v. Eric R. Mulkey COMPLAINT

Mulkey Failure to Appear

Dickey’s Barbecue Restaurants, Inc. v. Eric R. Mulkey Default Judgement

Dickey’s 2014 FDD provides no summary, just lists this action under the heading “Suits to Collect Payments and Enforce Terminations of Franchise Agreements”

[Court records indicate Dickey’s sued former franchisee of the Warner robins, GA Dickey’s Eric R. Mulkey.  Mulkey did not appear and did not defend himself.  Court issued a default judgement of $320,930.52 on August 1, 2014.  Erik R. Mulkey declared Bankruptcy 6/26/15]

 Dickey's Barbecue

 

 

 

 

 

 

 

 

 

 

James Neighbors Lawsuit

Dickey’s Barbecue Restaurants Inc. sold a franchise to an undercapitalized 56-year-old registered sex offender   franchisee with no restaurant experience, then sued him for $675,122.55 in liquidated damages.

 Neighbors, representing himself against Dickey’s high-powered legal team, was ordered to pay $8,195.99.  the judge called Dickey’s Liquidated Damages provision an “impermissable penalty.”

 

Dickey’s Barbecue Restaurants, Inc. v. Matthew Bonham and Pamela Bonham, No. 219-04725-2013

(D.C. Collin County, Tx 2013).

Disclosed in 2014 FDD only

 

Dickey’s 2014 FDD provides no summary, just lists this action under the heading “Suits to Collect Payments and Enforce Terminations of Franchise Agreements”

[Court records indicate Dickey’s suit was dismissed “for want of prosecution”]

Dickey’s Barbecue Restaurants, Inc. v. Chorley Enterprises, Inc. et al

American Arbitration Association Case Number 01-14-0000-2105
Chorley Enterprises, Inc., Matthew and Carla Chorley v. Dickey’s Barbecue Restaurants, Inc., et al 

United States District Court for the District of Maryland, Northern    Division, Civil Action No. 1:14 –cv-01650-MJG

Disclosed in FDD in years 2014, 2015, and 2016 (with Trouard)

Read more about the Chorley lawsuit and see the initial complaint here:

DICKEY’S BARBECUE PIT Franchise Warning

“Dickey’s filed a demand for arbitration on May 1, 2014, against Chorley Enterprises, Inc. and Matthew C. Chorley and Carla Chorley, former franchisees/guarantors, seeking a declaratory action and asserting a claim for breach of their obligations under the franchise agreement.

“On May 21, 2014, Chorley Enterprises, Inc. and Matthew and Carla Chorley filed suit against Dickey’s Barbecue Restaurants, Inc., Roland Dickey, Jr. and Jerrel Denton asserting claims and counter-claims for violations of the Maryland Franchise Registration and Disclosure Law and fraud.

“This case was consolidated with the Trouard  matter below.”

Dickey’s Barbecue Restaurants, Inc. v. Justin Trouard and Jessica Chelton.
Justin Trouard and Jessica Chelton v. Dickey’s Barbecue Restaurants, Inc., et alDisclosed in FDD in years 2014, 2015, and 2016 (with Trouard)See our story & posted documents:

On January 16, 2014, Dickey’s filed a Demand for Arbitration with the American Arbitration Association against Justin Trouard for breach of Dickey’s Franchise Agreement with Trouard and for fraud.

On May 28, 2014, Trouard filed a Complaint in the United States District Court for the District of Maryland against Dickey’s, as well as Roland Dickey, Jr. and Jerrold Denton, asserting claims for various violations of the Maryland Franchise Law. Trouard seeks $1 million in damages, rescission of the Franchise Agreement, restitution, attorneys’ fees and injunctive relief.

On February 19, 2016, the District Court stayed the federal court action pending the conclusion of the arbitration of Dickey’s affirmative claims…

“On July 8, 2016, Trouard filed a Chapter 7 bankruptcy petition in the District of Colorado (docket no. 1:16-bk-16819) and the arbitration was stayed as a result.

Dickey’s Barbecue Restaurants, Inc. v. James L. Neighbors, No. 4:14-cv-484-RAS (E.D. Tx 2014).

 

Disclosed in FDDs in years 2014, 2015, 2016

Dickey’s 2014 provides no summary, just lists this action under the heading “Suits to Collect Payments and Enforce Terminations of Franchise Agreements”

Read Judge’s Order calling Dickey’s liquidated damages provision an “impermissible penalty that calls for the payment of $675,122.55 in liquidated damages, which is 123.58 times more than actual damages.”

“Dickey’s filed a complaint and request for an injunction on July 28, 2014. Dickey’s sought liquidated damages as a result of defendants’ breach of the franchise agreement…

On August 18, 2014, Defendant Neighbors filed an Answer and Counterclaim, asserting claims against Dickey’s for misrepresentation and breach of contract related to the availability of financing, training, and total investment required.

Outcome:  “On June 9, 2015, Dickey’s filed a Motion for Summary Judgment and on September 18, 2015 the court granted the motion and awarded $8,195.99 to Dickey’s.”

Amy Meadows et al. v. Dickey’s Barbecue Restaurants, Inc. United States District Court, Cause No. 3:15-cv-02139 (N.D. Cal.)  Filed May 12, 2015

 

Disclosed in FDDs in years 2015, 2016

Read:

First Amended Complaint Amy Meadows et al. v. Dickey’s Barbecue Restaurants, Inc.

“On May 12, 2015, Plaintiffs Ann Meadows, Dawn Toff, Donna Chiano and Alfred Pena filed a Complaint  in the United States District Court for the District of Maryland against Dickey’s alleging fraud, violation of the California Franchise Investment Law; violation of unspecified unfair competition laws; and declaratory relief, all of which are based upon representations allegedly made to them regarding the operation of their franchises. Plaintiffs also sought to certify a class of California franchisees.

“On July  2,  2015,  an Amended Complaint was filed adding Plaintiffs Christy Bagby, James Domsic, George Jones, Charyl Hart and Gjones3 Ventures, LLC.

Status:  On April 21, 2016, Plaintiffs advised the AAA that they intend to file a motion  with the District Court challenging the AAA’s instruction to file individual demands for arbitration. On April 22, 2016, the AAA placed the arbitration in abeyance pending a ruling on Plaintiffs’ anticipated motion to the District Court…

Dickey’s Barbecue Restaurants, Inc. and Restaurant Growth, Inc. v. Roger Dennis Perry, American

Arbitration Association Case Number 712014000167

 

 

Disclosed in FDDs in years 2013, 2014, 2015, 2016

 

 

“Dickey’s filed a demand for arbitration against Roger Dennis Perry, former franchisee, on March 24, 2014 for breach of his obligations under the franchise agreement following his abandonment of the restaurant.

“Roger Dennis Perry filed an Answering Statement on May 19, 2014 asserting a counter-claim for breach of contract, fraud in the inducement, fraudulent misrepresentation, negligent misrepresentation, quantum meruit, and all other claims.”

Outcome:  “Dickey’s was able to regain operational control of the franchise business and as part of a settlement reached on January 6, 2015, Dickey’s agreed to pay Perry $14,000 and each party released all claims against the other.”

LITIGATION NOT DISCLOSED IN FDDs
Dickey’s Barbecue Restaurants, Inc. v. Leo R. Holway and Kelly A. Stacy,

U.S. District Court of South Dakota, Western Division Civ. No. 12-5065  Filed 09/14/2012 Terminated 01/09/2013

Document:

Dickey’s v. Holway Lawsuit

 

This lawsuit does not appear in Dickey’s FDDs we’ve seen

Leo Holway & Kelly Stacy filled out a franchise application 2009 and were franchisees of the 1565 Haines Ave, Ste E Rapid City, South Dakota

9/14/12 DBRI sued, alleging that Holway had not disclosed prior legal actions and 2 bankruptcies on his application, and not maintained operational standards in his Dickey’s store.

Holway hired Minnepolis franchisee attorney J. Michael Dady. On 12/19/12 both parties agreed to dismissal.

Dickey’s FDDs show that Dickey’s affiliate Restaurant Growth took over the Rapid City store and transferred it to franchisee Cassi Andrews.

  • Dickey’s Rapid City SD owners include:
  • Leo Holway (5/7/10-12/10/12)
  • RGI (Dickey’s)  took control 12/10/12
  • Cassi Andrews  2013-15 FDDs
  • NJBOET LLC 2016 FDD
Madision R. Jobe v. Dickey’s Barbecue Restaurants, Inc. 191st Judicial District, Dallas County, TX  No. DC-14-13790 Filed 12/15/14

 

Read:

Madison Jobe’s complaint alleges that DBRI and Roland Dickey, Jr. hired him to head up franchise sales.  Shortly after arriving at the Dickey’s home office, Jobe said it wasn’t a good fit and he was not going to stay.  Roland Dickey offered him $175,000 a year and an additional $10K per month to launch the Int’l program and train VP Operations Tim Sharp to head up franchise sales.  Even though Roland Jr. allegedly called his international development plan “f—-ing awesome,”  DBRI refused to pay the $10K per month as promised.

Jobe sued. The matter went into arbitration and the outcome is so far unclear.

Dickey’s Barbecue Restaurants, Inc. v. Clarence DeWitt, Dorothy DeWitt, Therese Pirelli, Joseph Pirelli, and PDQue, Inc.  Cause No. DC-14-13177  District Court of Dallas County, Texas 160th Judicial District  Filed November 11, 2014.

Documents:

DICKEY’S ORIGINAL PETITION AND APPLICATION FOR INJUNCTIVE RELIEF

Dickey’s Partial Default Judgement Against Clarence DeWitt

 

This lawsuit does not appear in Dickey’s FDDs we’ve seen

Dickey's Franchise

 

 

 

 

Dickey’s  franchise owner Clarence DeWitt did not file an answer, attend the hearing or respond to Dickey’s request for a partial default judgement.

The partial default judgment was awarded to Dickey’s for $482,887.68.

 

8/24/15  Clarence & Dorothy DeWitt filed for bankruptcy, which is believed to have discharged that debt to Dickey’s.

Also Read Past Posts on Dickey’s Franchise:

 

DICKEY’S Franchise Owners Share Frustrations & Fears

 

DICKEY’S BARBECUE PIT Franchise Complaints

DICKEY’S BBQ Is Dickey’s Overselling its Franchise Opportunity?

DICKEY’S BARBECUE PIT: How to Lose Everything in 5 Years or Less (Part 1)

DICKEY’S BARBECUE PIT: How to Lose Everything in 5 Years or Less (Part 2)

 

Is DICKEY’S BBQ Hiding Franchise Failures?

DICKEY’S BARBECUE PIT Closed Location List

DICKEY’S Franchises for Sale

Are DICKEY’S BARBECUE PIT Franchise Owners Being Exploited?

DICKEY’S Franchise Liquidation Clause: Enough Reason to Walk Away.

DICKEY’S Franchise Advice From a Wary Franchisee

DICKEY’S Franchise Class Action Lawsuit Filed in CA

DICKEY’S BARBECUE Franchise, Jerrel Denton, Roland Dickey Jr. Sued for Fraud

DICKEY’S Franchise Owner Claims he was Burned by Dickey’s, Roland Dickey, Jr.

DICKEY’S Franchise: Open Letter to Roland Dickey, Jr.

Dickey’s Barbecue Pit Employee Walkout Goes Viral

DICKEY’S BARBECUE PIT Franchise: Roland Dickey Sells to, Then Sues, Registered Sex Offender

DICKEY’S BARBECUE PIT Makes an Unhappy Franchisee Happy – Then Sues Him

 

 

 

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One thought on “DICKEY’S Franchise Lawsuits

  • December 13, 2016 at 12:35 pm
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    I LOVE THIS!!! Thanks for sharing, this is dynamite

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