A pair of big Washington state franchise companies have sued Jack in the Box, saying the company improperly terminated 39 locations in the state, even though they did not violate any rules, over the closure of eight other underperforming restaurants.
The two franchisees, AJP Enterprises and NHG Enterprises, are both owned by the same operator, Steve Wazny.
In the lawsuit, filed in a Washington state court, Wazny accuses Jack in the Box (JIB) of terminating the restaurants to force a sale. The lawsuit is asking a court to stop the termination. “JIB’s attempted termination has nothing to do with brand protection and everything to do with financial leverage,” the lawsuit said. “JIB’s strategy is clear: weaponize the cross-default provision to force plaintiffs into an involuntary sale at a distressed valuation.”…