News

Court decides in favor of Raving Brands, founder

February 25, 2009

ATLANTA — The US District Court Northern District of Georgia has ruled in favor of Martin Sprock and Raving Brands on all claims associated with 'Peterson vs. Sprock,' said trial attorneyRoy Barnes.

"Raving Brands is pleased with the decision of the court and looks forward to focusing on the future growth of its franchise concepts," Barnes said.

Sprock, Raving Brands president Daryl Dollinger and Raving Brands, along with several other companies, were sued by 29franchisees of the Mama Fu's Noodle House restaurant chain. Sprock launched the Mama Fu's concept in 2003.

According to an amended complaint filed in federal court March 2008, franchisees allege that Mama Fu's did not have a developed and perfected system before selling franchises; it had not established a national advertising fund for which it was collecting fees; it did not disclose the "kickbacks" it was receiving from suppliers and it was selling worthless development rights to the restaurant operators.

Mama Fu's Noodle House announced in March that the brand in the United States and Mexico was sold for an undisclosed amount to Austin, Texas-based Murphy Adams Restaurant Group, the largest franchisee of Mama Fu's.

At the time, there were 17 Mama Fu's restaurants in the United States, five of which were owned by Murphy Adams.