Food & Drink

Carl’s Jr restaurants expanding to GTA | Toronto locations closing

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  • Mar 21st, 2017 4:36 am
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Mar 22, 2005
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Get-a-fix wrote:
Feb 16th, 2016 11:13 pm
Yes they closed on the 14th. I'll see if i can post the entire text from another source.

Basically Carl's Jr. and 6 Points (the franchisee) have taken each other to court. Carl's claims 6 points didn't honor their agreement (opening 8 restaurants within 2016). While 6 points claim Carl's violated their agreement by not advertising the brand in Canada and disclosing incorrect information about it's locations in other provinces. 6 points is claiming $7 million to be refunded to them.
We won't see Carl'sJr back for a long while in Ontario. These things drag on forever. Glad I tried it once before they closed.

I really wish In N Out would open here. Now that would be cool!
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Mar 12, 2004
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Here is the article:

Law360, New York (December 23, 2015, 4:02 PM ET) -- Burger chain Carl’s Jr. hit a franchisee with a breach of contract suit Tuesday in California federal court, claiming it reneged on a deal to open 30 franchises in the Ontario area by 2020.

The “Thickburger” hawkers say Ontario-based 6Points Food Services Ltd. sent a letter in November saying it was backing out of its agreement and ceasing operation of its existing restaurants in January over alleged failures by Carl’s Jr. to disclose information in accordance with Canadian law. Instead, Carl’s Jr. says its partner is simply in over its head.

“6Points’ assertion of inadequate disclosure is a pretext,” the complaint reads. “6Points purported recission is, in fact, an attempt to exit CJR’s franchise system because of its inability to operate successfully by reason of its own mismanagement.”

According to the filing, Carl’s Jr. was approached by Michael Levine — who, along with Michael Meekins, is a primary owner, with 37.85 percent, of Canadian investment company Westbridge Capital Ltd., owners of 6Points — in early 2013 about starting a chain of Carl’s Jr. franchises in Ontario. Meekins and Levine were also named as defendants in the suit.

Later that year, Carl’s Jr. says it entered into an agreement granting 6Points the nonexclusive right to develop 30 Carl’s Jr. restaurants subject to terms including fees and a roadmap for opening all 30 franchises by Jan. 31, 2020, with deadlines along the way. The individual franchise agreements also included payment of royalties in the amount of 5 percent of gross sales, a 3 percent gross sales advertising fee and $150 per month for an advertising fund.

Instead of fulfilling its obligations, Carl’s Jr. claims, 6Points failed to open the required three restaurants by the first deadline of Jan. 31, 2015, and has only opened four restaurants to date, only half of the eight it agreed to have open by the same date in 2016. In addition, Carl’s Jr. says 6Points owes it at least $87,078.37 in royalties per the franchise agreement, and failed to obtain and deliver a letter of credit worth CA$1 million ($721,000) resulting in damages to be determined at trial.

In November, seven months after it opened its fourth franchise, 6Points sent a letter to Carl’s Jr. saying it failed to properly disclose information under Canadian law, including its neglect to mention it did not have plans for marketing efforts in Canada on par with its American campaign and its misleading them about its existing franchises in Canada, asking for a refund of $7 million and saying it will close its existing Carl’s Jr. restaurants and nix plans to open more.

Carl Jr.’s seeks damages for 6Points’ alleged breaches of contract and alleged misconduct by Meekins and Levine, but does not provide an estimate. It also seeks declaratory judgment its disclosures complied with Canadian law, negating 6Points’ claim for $7 million.

Attorneys for Carl’s Jr. did not respond to a request for comment. Representatives for 6Points Food Services also did not respond to a request for comment.

Carl’s Jr. is represented by Scott Ferrell of Newport Trial Group and Gregory M. Williams of Wiley Rein LLP.

Counsel information for the defendants was not available.
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May 21, 2015
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They had a full page ad last weekend in a Toronto Star franchising insert looking for franchise owners in Ontario. Actually it could have been in the Globe & Mail..I get both on the weekend
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i for one am still hoping to god there will be an in and out burger here. / drool
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Beneful1 wrote:
Feb 18th, 2016 12:21 am
They had a full page ad last weekend in a Toronto Star franchising insert looking for franchise owners in Ontario. Actually it could have been in the Globe & Mail..I get both on the weekend
I was super upset when I went to both St. Clair and Queen Street West branches in Toronto only to find them closed earlier this month.

I sure as heck hope that Carl's Jr. finds new Fanchisees for their brand and opens shop again soon in Toronto. :(

But I do agree that there was technically ZERO advertising campaigns on TV and in the Media regarding the Toronto stores...have not seen a single Ad since they opened...and that was very unprofessional.
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JKKim2983 wrote:
Feb 17th, 2016 1:26 am
What about the employees? Damn, the front line staff always gets shafted in a situation like this... :(
Totally agree...and the Carl's Jr. frontline staff were super nice and welcoming. I am so sorry they were put in this situation and were affected by this unfortunate situation. :(
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kool1 wrote:
Feb 4th, 2016 9:00 am
Carl's JR should have had a location in the core in a food court - maximize exposure and get the name out.
Totally agree 100% with this comment...but I know the francisee would have chose ultimately not to because of the very high cost to rent space in a big mall probably.
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nippleholic wrote:
Jan 15th, 2016 12:56 pm
Damn, I'm gonna miss the Monday bogo deal!
Me too...and you know what sucks totally...I had two FREE Thickburger Cards (the punctured stars regular customer cards)...so you can understand my total frustration and anger when I went early Feb. to use them and found BOTH locations Closed....UNANNOUNCED to the public beforehand. :mad:
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Feb 9, 2012
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They closed back in January, but yeah, such a short time here. Hopefully this mess can be fixed up soon, even if it's a new Franchisee.
BTW, St. Clair subway station was SMOTHERED in ads for Carl's Jr. even though McDonald's is right there, just upstairs inside the station.
Geez, McDonald's must have been Pissed. lol
It surprises me that McDonald's didn't think to buy up all the ad space downstairs in the Subway so Carl's wouldn't be able to.
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playnicee1 wrote:
Feb 22nd, 2016 3:43 am
BTW, St. Clair subway station was SMOTHERED in ads for Carl's Jr. even though McDonald's is right there, just upstairs inside the station.
Geez, McDonald's must have been Pissed. lol
It surprises me that McDonald's didn't think to buy up all the ad space downstairs in the Subway so Carl's wouldn't be able to.
Considering the continuous crowds at the subway McDonalds and only the sound of crickets in the Yonge/St Clair Carl Jrs location, I'd say that McDonalds was smart to save their advertising dollars.
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GenerationE wrote:
Feb 22nd, 2016 7:22 am
Considering the continuous crowds at the subway McDonalds and only the sound of crickets in the Yonge/St Clair Carl Jrs location, I'd say that McDonalds was smart to save their advertising dollars.
Carl's was far from having crickets. Coupons also helped.
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Sep 7, 2004
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playnicee1 wrote:
Feb 22nd, 2016 12:13 pm
Carl's was far from having crickets. Coupons also helped.
Went to the St Clair location twice last year for dinner. Both times it was basically just me and a couple other people in the restaurant. Wish it weren't so because although they were very expensive, the food tasted great and they had amazing milkshakes. I hope they come back soon.
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It's better that Carl's find individual franchisees instead of one who can open so many at once... most fast food companies are going the route of finding one big company to handle a territory but personally better to just find several who can open... if they consider this option I even have a business partner who would consider opening one.
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Sanyo wrote:
Mar 10th, 2016 9:37 pm
It's better that Carl's find individual franchisees instead of one who can open so many at once... most fast food companies are going the route of finding one big company to handle a territory but personally better to just find several who can open... if they consider this option I even have a business partner who would consider opening one.
Great!
Don't forget to have a private budget to run billboard ads etc to promote the business. Carl's themselves sure won't.
You might also want to consider a new location for less than $60/sqft...similar in size to either the queen st. or St. Clair & Yonge location. (depending on whether you wish to only be in the burger business, or maximize to include milkshakes etc.)

Good Luck!!

BTW, @ the St. Clair & Yonge location, as of this March, there is a fresh new notice confirming that the Carl's lease is terminated. (vs previous notice of distress & rent owing)
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