Dream Dinners Lawsuit

[independent owner]

http://www.courthousenews.com/2008/02/21/DreamDins.pdf

Originally posted on bluemaumau.org.  I'd venture to say we'll see more of these coming as zors, in general, have done a very bad job of setting up a model that can be profitable for the zee. 

And, yes, by now they know it and, yet, still continue to try and sell franchises - fraudulent?  Maybe.  Unethical?  You bet.

How does this bode for the industry in general, and, in particular, for us independents who have been successful?  Will lawsuits against franchisors taint the view of the entire industry?  I don't find this lawsuit surprising in any way, but I do find it concerning.

io

[dinnerzen]

Wow, now that's how to take some action.  "It's about time" is what immediately pops into my head.
 
I wonder if opportunity still exists for other DD owners to sign on to the suit?  I also wonder if any of these stores are still in operation or are just looking to recoup sunk costs? 

I don't know jack about legal issues, but what's the worst that could happen if you DID sign on?  I'm guessing the fees for this sort of case are paid in advance or when somebody wins/loses.   

It is sort of obvious that you limit your future opportunities if you don't sign on. I think if I were a DD owner, I might jump on board just to cover my arse.  At a minimum, if they never see a dime, but at least get out of the franchise agreement (that could be a ball and chain down the road) that's worth something. 

I've long had concerns about what negative press does for the industry- and those of us working to sustain it as an industry in some form or other.  I had several customers AND 2 staff ask about the NYT article- wondering if we were going to disappear, how we were doing, etc.  I think someone's post on another thread about being relatively honest with customers is a good approach-- we are still working to grow, help us get the word out, if you love us help us, let us know what else you'd like to see us offer.  My guess would be that local papers (local to the stores involved in the suit) are more likely to pick up on this in some fashion and I'm sure one of the bigger papers will run an article.  Whether or not you have a dream dinners in your area will determine whether it is newsworthy or not.

As we continue to work on the customer impact survey through IAMPB, shooting for a deadline of March 31st for customer responses...it makes me want to mull over how those results could be used for more than just a response to the economic woes of the times.  There are so many strong testaments to the value that meal assembly brings to these people-- in a lot of places.  It would be nice if we had broader participation. 

For stores looking to dig in their heels and see their way through this, developing a coordinated strategy/response would sure be helpful.  Should the rest of the industry sit back and be quiet? Take a proactive approach?  If proactive- what?       

[Go west]

Wow...this is crazy.  The dollar amounts specified in the suit are large enough to bring the zor to it's knees...which leads me to believe they are actually looking for a settlement.  I'm not versed in reading these claims, but it looks to me like they are either seeking millions per plaintiff; certainly more than was invested and lost.  So, the zor says, "eh, how bout we give you back what you invested and call it good."

Anyone who knows...could this become a class action suit?

[former dd owner]

I don't know..but I emailed the lawyer and will try to find out...

former dd owner in the south

[dinnerzen]

Me thinks they will be a VERY busy little law firm in these next few weeks!

[guest]

why is it the independents are acting so gleefull over this lawsuit? whats their beef with dd?

end result is the industry has lost one of its top players in the game and the chance of ever recouping their investment. If the brand that is getting the industry recognition through media, co-branding with big players and outright scale loses its ability to move ahead then the industry may never recover. Game over, go home.

Anyone want to open a used cooler store?

[guest]

The game is already over......it has been for some time now.

[mama foodie]

I don't think that MAK's have been around long enough to say game over.   Are video rentals over?  No, the distribution channels have just changed.  Many are now "renting" via on demand or via the mail through Netflix or blockbuster.com. 

Are convenience meals over?  I think not.  However, it you haven't gotten close with your customers now to find out why they're coming to you or not coming and what they want - then it is game over.  Because - your customer drives the market - not you.  You may think it's wonderfully convenient to follow the traditional MAK model - while your customer may be thinking - I'm almost done with this, it doesn't work for me anymore....

You have nothing to lose by asking - and much to lose by not.

[Sam]

Very well said Mama Foodie!

And I agree with Guest, as an independent I am not gleeful about the DD lawsuit. Competition is good for business and if people think that the whole concept is failed they might not want to go to any MAK, because they assume you will be out of business soon. I also agree that what we have been seeing over the last year or so is a shakeout and the ones who continue to innovate and respond to customer's changing desires (oh please, please, please let me be one of them!) will have a viable business in the end. It may look completely different from what we envisioned it to be when we started, but isn't that true about many things in life? Marriage? kids? houses?

[dinnerzen]

Uh, if you mistake the words I personally chose in my response as glee then I've obviously not done a good job conveying my intent.  Negative press that ANY piece of the industry receives is negative press for every store out there.  I don't have an issue with Dream Dinners, Super Suppers, or any other store independent or franchised, so long as they play fair and present a good product and image for the industry- and try to keep a reasonable radius (the same I have tried to do). 

I can't generate concept understanding all by myself and I'm sure most franchisees feel the same way. Marketing and advertising are very local phenomenon. 

I certainly give the store owners kudos for finally stepping up and doing something about their concerns.  Whether it has legs or not, only time will tell. 

And I reiterate- I do think that ANY store (franchise or independent) that sits back and lets the press run away with bad spin does itself and the industry a disservice.   

[guest]

I for one am glad this news has surfaced. I question a little bit about the timing of the KC group and its efforts to talk MAK s into joining them. I think there has been quite a bit of inside information coming from a former employee. If fact i would bet that it is all so cleverly tied together, the trashing, the solution, the KC group and then the lawsuit. Things of course are never what them seem...this will make for a good novel some day.

In the meantime I am also glad that this blog is getting back to its intended purpose. To help others. Tuckerbox has withstood the test, congrats.

There will be a future for meal assembly. Still a lot of work to do but the combined sales for the big two was 100 mill for last year. You can't ignore that. It will take some more effort to change the habits but the battle is worth the cost. History will tell of a brave group trying to make a differance. Putting everything they have into it. Most of us left the corporate world to strike out on our own. We all must take comfort in knowing it was and is noble. Our comfortable lives are of a recent history. Many of our forefathers would have giving everything to try to be what we tried/do. 1400 Store owners is but a small part of the population. I know some call us stupid but at least we try. The message hasn't really changed, all of us heard someone in our lives tell us this wouldn't work. It did'nt stop us. Now we relize its not that easy. Do we lay down and die? No. We can't.

Hang in there, do everything in your power to get new customers. Keep the old ones. Be smart, do'nt give away the store. Customer service, good value, health benefits should all be part of your sales presentation. Good luck.

[Sam]

Great pep talk! I am reminded of the John Beluschi line from Animal House, "Did we give up when the Germans bombed Pearl Harbor? NO!" So I start today with a big smile on my face. Thanks!

[guest]

I dont want to get into a pissing match with "guest" but I have a few comments to make:

Do you personally know the 'former employee' that you believe is behind the trashing, the solution, starting the KC, & the wonderful Lawsuit? 

I do, I talk with 'Her' almost everyday. I beleive her motives are always for the Heart of each MA Owner. I know that Her desire is to see the Lies, Fraud, & Marketing Waste come to an End by the same people that claim to be Christians!

-I know at times 'She' cant sleep at night because because of her pain and she is thinking of ideas all the time about 'saving the MA'

-I know at times "She" puts MAK Owners before herself, family, job. 'She' is thier to listen, an hear their cries and frustration, because they FEEL voilated. This (Drives 'Her' to find a Solution!)

-I know she listens & prays for anyone that wants it "Free of Charge!"

"Her" actual involment in the KC is ZERO. She does support this because SHE believes it can work becuase of Her past experince owning an MA store. 

I get real defensive when others think this Meal Assembly Site is all about bashing the Industry, and now it is turning 'around?'

Excuss me? As the Lies, Fraud, Decet come out from the framework Their is more heartbreak to come.

I am eternaly Thankful for "Her"

CAddowner

The novel might be the things that makes Moms aware of the Meal Assembly Kitchens. Who knows.

 

[mama foodie]

Do you MAK owners know that Panera is facing a class action lawsuit?  Do ya think it's gonna hurt 'em?  Maybe for a blink of an eye. 

Just because one franchise may or may not have done something unscrupulous that is being brought to light doesn't shed negativity vibes over all MAK's.  You think yourselves way too important if you think that.  Your customers may not even be aware of the lawsuits, you are, because you're in the biz.

Just keep your eyes on the prize of constantly being the best at what you do and staying close to your customers.  All this energy you're focusing on this lawsuit could be better spent elsewhere.

[guest]

I have invested over $800,000 in the MAK business. Tina & Stephaine said that they had over 500-800 customers a month. They led me to beleive my store would have the same experince. She showed me facts and that is what I used to set up my business plan.After 4 years I am still waiting to maintain 150 guest.

YES, I do beleive customers are learning about this Lawsuit/Industry and it is bleak.

Sounds like you have been sipping on some of Darin Leonards kool-aid a bit much.

Wake up! Every Zor's that is out there is based on fraud & Lies. It will be uncovered soon.

Dream Dinners is just making the exsisting owners comfortable while the house of cards falls around them-

I'm choosing a lawyer, and closing up shop!