Recently, The Bombay High Court has appointed an arbitrator within the case of a 6 month old debate between Merwans, an Andheri based confectionery shop and its 5 franchisees over income sharing and implementation of the agreement. In 2015, the 84-year-old Merwans pastry shop for the first time put licenses to 20 franchises. Five of them went to court last month for charged one-sided changes in the agreement which have driven to misfortunes.
The franchisees that have drawn closer the court include Rajeev Balan from Andheri East, Nirali Dalvi from Borivali East and Joy D’ Souza from Virar West. Balan said his permit was ended by Merwans in September since of the progressing debate. Senior advocate Fridun De Vitre as an arbitrator will listen to grievances of both parties.
The franchisees have affirmed that the agreement has called for 365 working days but they are constrained to shut each Thursday, coming about in misfortune of 52 days each year. Besides, establishment charge for five-year reestablishment was multiplied from Rs 5 lakh to 10 lakh for 2020-25. In their appeal, the franchisees have too charged that Merwans has expanded its commission from 22% to 23% for items like cakes, baked goods, sweet puffs, mousse, swiss rolls, chocolates, treats, and bread. For certain puffs, bread, and rolls, Merwans has expanded commission from 24% to 26%. The solicitors said the changes to the agreement have been made in spite of signatures on stamp papers.
Whereas Joy D’Souza and Sharma said they have paid Rs 20 lakh on nonrefundable establishment charge, the rest paid Rs 10 lakh, in conjunction with Rs 2 lakh refundable security store. They said they have moreover paid in lakhs for the advancement of their outlets on the lines of the first Merwans for which the planner and other sellers were provided by the most pastry shop. They said they have contributed over Rs 70 lakh each in the business.
Advait Sethna, who is speaking to the Merwans said that a bunch of franchisees has claimed misfortunes and recorded assertion petitions against Merwans. We have answered to the take note conjuring the discretion, saying that all claims are untrue, pointless and the take note is untimely. Sethna said that Merwans has moreover recorded a commercial mental property suit challenging the trademark and exchange dress encroachment by Balan. This he said has been put for hearing for certain critical orders on November 18.
Source: Mumbai Mirror