Minority-Owned Restaurant Corporation Files Discrimination Complaint Against Denny’s
Denny’s Inc., America’s most recognized name in family dining and the nation’s largest full-service family restaurant chain, is being charged with racial discrimination by a Detroit, Mich.-based minority owned and operated restaurant management corporation.
The Birmingham, Mich.-based law firm of Norman Yatooma & Associates, P.C. (NYA), which has been engaged to manage the litigation between Denny’s and YPSI Corporation, recently filed for relief against Denny’s in Wayne County Circuit Court in Detroit, Mich., alleging breach of contract, racial discrimination and multiple violations of Michigan’s Franchise Investment
Law.
The complaint states that YPSI Corporation entered into a fifteen-year agreement with Denny’s for the lease and operation of a Denny’s restaurant located in Allen Park, Mich. As a participant of Denny’s Fast-Track minority development program, YPSI Corporation was poised to continue as a successful franchisee until Denny’s violated the terms of its Fast-Track program and demanded an exorbitant sum of money to remain in business.
“YPSI merely wants to be treated the same as the non-minority Denny’s franchisees,” explained Norman Yatooma, principal of NYA and lead attorney for the case. “Denny’s and YPSI negotiated the agreement and it now appears that Denny’s is going back on its offer to guarantee financing and ensure the success of its minority franchisees.”
As part of its pattern of discriminatory behavior, YPSI alleges that
Denny’s has:
* Routinely placed minority franchisees in underperforming locations
while placing non-minority franchisees in more desirable and profitable
locations.
* Terminated YPSI’s franchise agreement in bad faith and in violation
of Michigan’s Franchise Investment Law.
* Induced YPSI Corporation into signing a Franchise Agreement by
misrepresenting financing terms and obligations.
“Despite being forced to purchase an underperforming Denny’s location, YPSI was an outstanding member of the Denny’s community. Our client will not stand idly by while Denny’s discriminates against them and acts contrary to its commitment to ensure the success of minority franchisees,” said Yatooma.
NYA is a full-service law firm offering expertise in civil and criminal
cases in its Oakland, Macomb and Emmett County offices. While the firm has a wide range of practice groups and areas, it specializes in commercial litigation sounding in complex theories of contract and tort liability including franchise, class action, business and real estate law.
