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Restaurant franchise sued for breach of contract

A franchise of a popular themed restaurant is currently under fire from a landlord for allegedly failing to pay a sum of rent owed, according to local business news. Florida residents will be familiar with Mexican restaurant chain Taco Del Mar, a franchise of which is currently being sued for breach of contract by the mall in which it is located. The landlords attest the franchise owners have failed to pay their lease rent for the space within the mall’s confines.

General Growth Properties is seeking $200,000 in damages from the Del Mar franchise owners. The lease of property began in August 2009 and was due to expire at the end of 2018, according to the lease agreement. The damages sought cover back rent and attorney fees, according to the affidavit.

The lawsuit states that a notice was sent to the franchise owners in March of outstanding rent dating back to March of the previous year, the total of which was roughly $32,000. Since that time the owners closed the doors of the franchise and independently filed for Chapter 13 bankruptcy, which allows business owners to pay off debts gradually without liquidating assets. There has been no official comment from either owner.

Whether it is an agreement to pay rent or provide a service, a contract represents the fundamental building block of the capitalist system. A breach of contract is taken seriously both here in Florida and elsewhere throughout the nation, because it is a denial of a deal made in good faith and is therefore in opposition to both business law and ethics. Anyone who feels a contract has not been fulfilled by those contracted may gain by researching their next steps in pursuing a breach of contract lawsuit.

Source: bizjournals.com, Ala Moana Center suing Taco Del Mar owners for breach of contract, Duane Shimogawa, Oct. 3, 2013

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