Panzerotto accused in class action

A statement of claim prepared by Toronto franchise lawyer Ben Hanunka proposes the lawsuit be certified as a class action. It asks the court to order a refund of excess profits for all franchisees, plus a $1 million award as a punishment.

The Toronto Star
June 25, 2008

Panzerotto accused in class action
$1 million sought due to alleged overcharging
Jim Daw

Panzerotto Pizza and Wing Machine is being accused of overcharging its franchisees for advertising, order processing and supplies.

Former franchisee 6323588 Canada Ltd. alleges in a statement of claim in the Ontario Superior Court of Justice that operators of the 50-outlet Toronto chain founded in 1976 misrepresented fees and policies regarding product rebates.

Joseph Schiavone, who runs Panzerotto with his brothers Vito and Frank, responded yesterday that "none of the allegations are true and they can't be backed up at all." For example, he said, the company has had to supplement franchisees' contributions to the advertising fund.

The franchisee company is directed by Leo Oxana, and operated an outlet on Yonge St. in mid-Toronto between January 2005 and April 2008.

A statement of claim prepared by Toronto franchise lawyer Ben Hanunka proposes the lawsuit be certified as a class action. It asks the court to order a refund of excess profits for all franchisees, plus a $1 million award as a punishment.

Schiavone said the franchisee owes money to Panzerotto, but it is not his company's practice to sue franchisees whose businesses fail.


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