B.C.'s Freshslice Pizza chain is suing a pair of former franchisees who rebranded their locations overnight.
This week, a judge refused to grant Freshslice — a B.C.-based pizza chain — an injunction that would have shuttered all HellCrust Pizza and Yummy Slice Pizza locations pending the hearing of a lawsuit.Freshslice has —at first blush — a strong argument against its former business partners, the judge said the bigger pizza chain had failed to prove it would suffer "irreparable harm" if the injunctions were refused.
"Further, any loss of sales or revenue suffered by Freshslice can be adequately compensated for with an award of damages."The legal battle sheds light on the mysterious transformation of three pizzerias in Burnaby, Vancouver and Maple Ridge in the night between March 31 and April 1, 2021 — they went to bed as Freshslice and woke up HellCrust.
The former franchisees sent notices purporting to rescind the agreements they had with Freshslice, whose owner Ray Russell said he learned about the situation in both cases when he received photographs of the rebranding on the morning after it happened. On termination of the contracts, the agreements required franchise operators not to carry on any business at the franchised location and not to carry on any business "involved in the sale of pizza and other Italian food items" within five kilometres.
The owners of HellCrust and Yummy Slice claim Freshslice implemented a "program of systematic, unfair, and oppressive conduct" aimed at forcing them to sell their locations at a reduced price. "The Freshslice logo is red and green on a white background with a small pizza slice. The HellCrust logo is black with a cream background and contains a prominent picture of a pizza chef in devil red with a devil fork. The Yummy Slice logo is red and yellow with a large cartoonish picture of a pizza slice," the judge wrote.
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