Domino’s Pizza Enterprises (ASX:DMP) expecting franchisee litigation

Domino’s Pizza Enterprises (ASX:DMP) expects to be served shortly with Federal Court proceedings by an Australian franchisee.

They say they are disappointed, but not surprised, by this action by an Australian franchisee.

The two parties have been in discussions for some time, but have failed to come to a settlement.

It notes that it previously flagged that some of its franchisees might choose to take legal action or to raise the threat of litigation through the media in an attempt to achieve leverage to bargain with it.

While Domino’s has not been served with the formal legal proceedings, it is aware of the general nature of the claims. It rejects them and intends to defend them in court if they are served.

The claims are not expected to be financially material to Dominos.

Shares in Domino’s Pizza Enterprises (ASX:DMP) closed 0.4 per cent lower yesterday at $53.80.
 
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