DQ Grill & Chill litigation history

The franchisor

Pending (4)

• American Dairy Queen Corporation vs. David Wineinger

  pending

  Brought against a franchisee · filed 2021-06-07 · United States District Court, Western District of Wisconsin · 3:21 CV-00378

  “… (United States District Court, Western District of Wisconsin, 3:21 CV-00378, filed June 7, 2021). ADQ initiated this litigation seeking a declaratory judgment that ADQ has the contractual right to condition transfer of Defendant’s franchise on the buyer signing ADQ's current form operating agreement”Page 17 of the 2022 FDD, Item 3

• Oakland Family Restaurants, Inc. and Lake Area Restaurants, Inc. v. American Dairy Queen Corporation

  pending

  Brought by a franchisee · filed 2021-10-28 · United States District Court, Eastern District of Michigan, Southern Division · 2:21-cv-12539-TGB-EAS

  “… (United States District Court, Eastern District of Michigan, Southern Division, #2:21- cv-12539-TGB-EAS, filed October 28, 2021). Plaintiffs, Dairy Queen® franchisees, have initiated this litigation”Page 17 of the 2022 FDD, Item 3

• Beristain Roofing & Construction, LLC v. Justin Caleb Story, JCS Properties, LLC, Caspian/Columbia Construction Group, Inc., Tom Huff, Mark Provenzano, a.k.a. M. Prevensagallo, and American Dairy Queen Corporation

  pending

  filed 2019-08-29 · Chancery Court for Dickson County, Tennessee at Charlotte · 2019-CV-320

  “… (Chancery Court for Dickson County, Tennessee at Charlotte, #2019-CV-320, filed August 29, 2019).”Page 17 of the 2022 FDD, Item 3

  Outcome: “ADQ disputes Plaintiff’s allegations, denies that it made any misrepresentations and intends to vigorously defend against the claims.”

• Denney Mechanical, LLC v. Justin Caleb Story, JCS Properties, LLC, Caspian/Columbia Construction Group, Inc., Tom Huff, Mark Provenzana, a.k.a. M. Prevensagallo, and American Dairy Queen Corporation

  pending

  filed 2019-06-28 · Chancery Court for Dickson County, Tennessee at Charlotte · 2019-CV-239

  “… (Chancery Court for Dickson County, Tennessee at Charlotte, #2019- CV-239, filed June 28, 2019).”Page 17 of the 2022 FDD, Item 3

  Outcome: “ADQ disputes Plaintiff’s allegations, denies that it made any misrepresentations and intends to vigorously defend against the claims.”

Concluded (6)

• White Enterprise, Inc. vs. American Dairy Queen Corporation

  settled

  Brought by a franchisee · filed 2020-01-30 · American Arbitration Association · 01-20-0000-3584

  “… (American Arbitration Association, Case No. 01-20-0000-3584, filed January 30, 2020). Claimant commenced this action January 30, 2020 alleging a breach of contract and implied covenant of good faith and fair dealing.”Page 20 of the 2022 FDD, Item 3

  Outcome: “The parties reached a settlement on May 15, 2020 under which they agreed that, effective January 1, 2021, Claimant shall pay to ADQ a sales promotion fee of 2.5% of gross sales and ADQ shall provide Claimant with the full benefits available under the National Marketing Fund”

• M & M Petroleum Too, Inc. vs. American Dairy Queen Corporation

  settled

  Brought by a franchisee · filed 2019-10-18 · American Arbitration Association · 01-19-0003-3181

  “… (American Arbitration Association, #01-19-0003-3181, filed October 18, 2019).”Page 19 of the 2022 FDD, Item 3

  Outcome: “ADQ denied Petitioner’s claims and counterclaimed for breaches of the operating agreement. The parties reached a settlement on March 12, 2020 under which they agreed to terminate the operating agreement effective April 15,”

• American Dairy Queen Corporation. vs. Universal Investment Corporation f/k/a Neos Corporation

  settled

  Brought against a franchisee · filed 2016-05-16 · United States District Court, Western District of Wisconsin · 16-cv-323

  “… (United States District Court, Western District of Wisconsin, No: 16-cv-323, filed May 16, 2016). ADQ commenced this action against the defendant franchisee seeking a declaratory judgment that ADQ properly terminated defendant’s franchise agreement”Page 19 of the 2022 FDD, Item 3

  Outcome: “The parties settled the remaining claims on December 11, 2017 with defendant agreeing to relinquish any remaining rights he may have to use ADQ’s trademarks and systems under, and to the termination of, his franchise agreement and the territory agreements for four territories in Iowa in exchange for a mutual release of claims and a payment of $425,000 from ADQ.”

• Rodney Johnson and Food Ventures, Inc. vs. American Dairy Queen Corporation

  settled

  Brought by a franchisee · filed 2016-12-09 · American Arbitration Association · 01-16-0005-3571

  “… (American Arbitration Association, No. 01-16-0005-3571, filed December 9, 2016). Claimants, a DQ Grill & Chill franchisee and its owner, initiated this arbitration claiming that ADQ unlawfully encroached upon their franchise”Page 19 of the 2022 FDD, Item 3

  Outcome: “On August 5, 2017, the parties entered into a settlement agreement under which claimants are allowed to pay ADQ a reduced royalty fee and advertising fee for set periods and avoid the modernization requirement for the next transfer of the franchise since the restaurant recently had been remodeled to current image. ADQ also paid claimants $25,000.”

• Richard J and Kazuko Kunz, Bruce D. and Patricia J. Lahm vs. American Dairy Queen Corporation and International Dairy Queen, Inc.

  settled

  Brought by a franchisee · filed 2013-01-15 · State of Minnesota District Court, Hennepin County, Fourth Judicial District · 27-CV-13-922

  “… (State of Minnesota District Court, Hennepin County, Fourth Judicial District, #27-CV-13-922, filed January 15, 2013). The plaintiffs initiated this action claiming that ADQ improperly increased or “flexed” franchisees sales promotion fees”Page 18 of the 2022 FDD, Item 3

  Outcome: “In or about November 2013, the parties reached a settlement agreement under which ADQ agreed to reimburse plaintiffs the amount of their “flexed” sales promotion fees for the period January 1, 2006 through December 31, 2010. As part of the settlement, ADQ is entitled to recover the amounts it reimbursed the plaintiffs from future sales promotion fees paid by them.”

• Timothy A. and Amy Lefevre, Dairy Queen of Bainbridge, Jerry Chabrian, Lavern Engelman, Ken Fugett, Thomas and Karyl Cleary, Thomas E. Klein and MAR-KA, Inc. vs. American Dairy Queen Corporation and International Dairy Queen, Inc.

  settled

  Brought by a franchisee · filed 2013-01-15 · American Arbitration Association · 002-8DF-9JF

  “… (American Arbitration Association, No. 002- 8DF-9JF, filed January 15, 2013).”Page 18 of the 2022 FDD, Item 3

  Outcome: “On or about September 10, 2014, the parties reached a settlement agreement under which ADQ agreed to reimburse any franchisees that were incorrectly flexed the amount of their “flexed” sales promotion fees for an agreed upon number of years.” (page 19)

Status not stated in the filing (3)

• American Dairy Queen Corporation vs. McMath 2 Corporation, Byron G. McMath, Beverly McMath, Bliss McMath, Breana McMath, Bryon McMath, II

  Brought against a franchisee · American Arbitration Association, Minneapolis, Minnesota · 01-21-0000-1903

  “… American Arbitration Association, Minneapolis, Minnesota, Arbitration No. 01-21-0000-1903.”Page 20 of the 2022 FDD, Item 3

• American Dairy Queen Corporation vs. The McMath Company Group, Inc., Byron G. McMath, Beverly McMath, Bliss McMath, Breana McMath, Bryon McMath, II

  Brought against a franchisee · American Arbitration Association, Minneapolis, Minnesota · 01-21-0000-1895

  “… American Arbitration Association, Minneapolis, Minnesota, Arbitration No. 01-21-0000-1895.”Page 20 of the 2022 FDD, Item 3

• American Dairy Queen Corporation vs. Yogikrupa, Inc., Nareshkumar Patel, and Jaiminkumar Patel

  Brought against a franchisee · Circuit Court of Madison County, Alabama · 47-CV-2021-900813.00

  “… Circuit Court of Madison County, Alabama, Case No. 47-CV-2021-900813.00.”Page 20 of the 2022 FDD, Item 3

Parent, affiliates, master franchisor and subfranchisor

Concluded (1)

• Sinil Restaurants, Ltd. v. Dairy Queen Canada, Inc.

  settled

  Brought by a franchisee · Dairy Queen Canada, Inc. (DQC) · filed 2011-09-09 · Court of Queen’s Bench of Alberta, Judicial Centre Calgary · 1101-12453

  “… (Court of Queen’s Bench of Alberta, Judicial Centre Calgary, No. 1101-12453, filed September 9, 2011). Action filed by franchisee against DQC for breach of contract, misrepresentation, breach of fiduciary duty and breach of the Franchises Act, Alberta, RSA 2000, c.F-23 (the “Act”)”Page 18 of the 2022 FDD, Item 3

  Outcome: “The parties reached a settlement, effective February 5, 2013, with mutual releases that eliminated the lease administrative fee and the net sales waiver and assignment language from plaintiff’s incentive package, and provided assurances related to renewals of the operating agreement and sublease. The Discontinuance of Claim was filed and the matter was dismissed on March 1, 2013.”