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Boston Market has been in crisis for a number of years operating, and final week, one in every of its greatest authorized challenges lastly got here to a head. A judge has ordered the rotisserie hen chain to pay US Meals $11.9 million after the distributor filed a lawsuit in opposition to Boston Market final July over unpaid payments.
Boston Market’s authorized woes
Boston Market has been under legal fire from nearly each path doable, however its battle with US Meals marks a serious blow. The latter claimed that the restaurant didn’t pay for shipments way back to 2022 and continued to fall behind all through final 12 months, even after a promissory observe established a schedule for Boston Market to repay its provider.
The choose dominated in favor of US Meals in a “default judgment,” as a result of the corporate had “deliberately dodged their obligations to the courtroom.” US Meals had filed the lawsuit in opposition to Boston Market in July of final 12 months, however the abstract judgment notes that Boston Market’s proprietor, Jay Pandya, didn’t acknowledge the submitting till September. As soon as Pandya did acknowledge the litigation, he continued to overlook deadlines to answer it.
“Pandya deliberately evaded service, and the failure of all defendants to well timed attend to this litigation was purposeful, with no legitimate excuse for delay,” states the abstract judgment partially.
Even after this judgment, US Meals shouldn’t be letting up on Boston Market or Pandya. As of February 2024, the distributor has submitted a separate filing to the courts for extra debt, late charges, accrued curiosity, and legal professional charges. This extra submitting consists of 5 counts in opposition to Boston Market, which complete round $30.7 million.
How Boston Market is dealing with authorized points
Determined occasions name for determined measures, and Boston Market is in no place to show down new franchisees. In an obvious effort to tug itself out of the deep monetary drain it’s been circling, Boston Market just lately up to date its franchising course of, making it possible for virtually anyone to open a restaurant location.
Underneath the brand new system, these trying to open up a Boston Market location may achieve this “WITHOUT ANY BUY-IN REQUIREMENTS,” per the brand’s announcement. events merely need to fill out a questionnaire, which appears extra targeted on the applicant’s ambitions fairly than their sensible enterprise expertise. This system, named Boston Market Join (BMC), additionally locations an emphasis on opening “non-traditional areas” similar to “inside your restaurant, deli, fuel station, or any appropriate institution.” Principally, it feels like the corporate will take no matter it could possibly get.
Along with opening itself to as many franchise alternatives as doable, the chain additionally introduced it might be releasing a brand new menu merchandise each six weeks. The brand new dishes are every impressed by meals from different international locations and are described as “a celebration of historical past [that] serves as a testomony to Boston Market’s enduring dedication to shaping the way forward for eating experiences.”
The model closed the most locations out of any restaurant chain in 2022. Restaurant Enterprise reported that Boston Market had closed 41 items by the top of that 12 months, which accounted for 12% of its general footprint. By August of 2023, the chain had closed 50 further items.
An $11.9 million hit is only one extra headache for this as soon as mighty rotisserie chain. Decreasing the barrier to entry for brand new franchise areas is an attention-grabbing technique, however one that may become little extra then a band-aid method. Time will inform, however it might be time to take the hen off the spit.
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