San Churro outlet owner sued for $360k
The head franchisor of Spanish doughnut chain San Churro is suing the owners of a Queensland outlet for $360,000 after the cafe closed its doors in May.
Venga Pty Ltd (Venga) filed its claim against owners of the cafe in the popular tourist precinct of South Bank,
Martin Jeffrey Bentley and Glenda Margaret Bentley, from Rochedale in Brisbane's southern suburbs, in the District Court alleging they have breached their franchise agreement and an agreement to repay a loan.
Venga alleges they breached the agreement in February when several direct debit payments for inventory, royalties, marketing levies and loan repayments between November 2019 and January this year were dishonoured.
Venga further alleges the couple continued to breach the agreement with further failures to make payments.
Venga alleges the couple are liable to repay the money because they signed guarantees to indemnify the San Churro Group against all losses on behalf of their company when they signed a five year franchise agreement on August 16, 2017.
Venga also alleges it loaned the couple money in October last year, and that the couple agreed to repay it monthly over seven years.
Venga issued a termination notice to the couple on September 9.
In May the South Bank store posted on Facebook that it was "temporarily closed".
The couple had been operating the franchise at South Bank since 2012, court documents state.
Venga sent letters of demand to the couple's solicitor in August and September, but the couple "refused or neglected to comply with" them, court documents state.
Venga is seeking $362,787 owing as at October 31, plus interest which is accusing at a combined rate of more than $100 per day.
The Chocolateria San Churro concept began in Australia 14 years ago and its cafe's sell churros, desserts and coffee.
It has stores nationwide including six other stores in Queensland including on Charlotte St in the CBD, Toowong, Westfield Chermside, Garden City shopping centre in Upper Mount Gravatt, North Lakes and Springfield.
They are seven stores in Sydney, seven in Melbourne, three in Adelaide, seven in Perth and one in Hobart.
The Courier-Mail contacted Thompson Partners Accountants in Albion, the registered office of Glendamar Chocolates Pty Ltd, the franchisee company owned by Mr Bentley and his wife.
Thompson Partners Accountants said they did not wish to comment about the case.
Originally published as San Churro outlet owner sued for $360k