PHILADELPHIA—A Florida man is suing a Pennsylvania deli company and its owner over claims they induced him to buy a franchise with no intentions of actually honoring their agreement.
William Waskey filed a lawsuit on Jan. 11 in U.S. District Court for the Eastern District of Pennsylvania against Bain's Deli Corporation, Bain's National and Jeffrey Jolles, alleging fraudulent misrepresentation, fraud in the inducement, breach of contract and unjust enrichment.
The suit states that in June 2010, Waskey and the defendants entered into an agreement whereby Waskey invested $75,000 in Bain's with the understanding that he would be paid 10 percent of his investment annually as the return on the investment, in monthly payments of $625, plus 10 percent of the proceeds from the sale of any new Bain's franchise and 10 percent of the franchise royalties from any such sale.
The defendants made monthly payments of $625 to Waskey until June 19, 2015, when they allegedly ceased making payments.
In July 2015, Waskey contacted Jolles to demand payment of the unpaid monthly installments and the return of his initial investment, but Jolles allegedly stated he needed to find another investor before he could pay Waskey.
The defendants have allegedly not made any further payments to Waskey, nor returned his initial investment.
The suit alleges the defendants entered into the agreement with Waskey to obtain operating capital while attempting to sell the company or additional Bain's franchises, but when it became apparent Bain's would not be able to sell either additional franchises or the company, the defendants ceased paying Waskey under the agreement.
Waskey seeks actual damages of at least $78,750, punitive damages, attorney fees and other costs of the suit. He is represented by attorney Krishna B. Narine of Mereidth & Narine in Philadelphia.
U.S. District Court for the Eastern District of Pennsylvania Case number 2:16-CV-00110-LS