Less than a year after opening, a Haraz Coffee House near Syracuse University in New York has closed as the local operators face a lawsuit filed by the coffee chain’s franchising company.
Michigan-based Haraz Coffee House Franchising LLC filed the lawsuit Sept. 25 in New York State Supreme Court in Onondaga County, alleging numerous violations of a franchise agreement involving the cafe at 125 Marshall St. The defendants are Coffee Bean Syracuse LLC and individuals Mohammed Alsaidi and Emad Alzokari.
The complaint alleges that the franchisee purchased coffee, tea, milk, syrups, packaging and other products from suppliers not approved by Haraz, despite contractual purchasing requirements. Haraz also alleges the operators failed to pay outstanding product invoices and royalties, and removed the franchisor’s access to the store’s Toast point-of-sale account, limiting its ability to monitor sales…