Papa Murphy’s franchise owners who accuse the corporation of deceptive actions will be allowed to pursue some claims in their lawsuit against the take-and-bake pizza chain, a Clark County Superior Court judge decided Wednesday.
However, Judge Scott Collier also ruled partially in favor of the corporation, including determining that franchise owners who live outside Washington cannot seek fraud claims against Papa Murphy’s International under the state’s Franchise Investment Protection Act.
During a 30-minute hearing, Collier delivered nuanced rulings in a complicated case involving more than 30 franchisee groups and a corporation that has more than 1,400 outlets and that recently completed a public stock offering.
The Vancouver-based company had asked Collier to toss out the suit. Although the judge dismissed fraud claims by out-of-state franchise owners under one part of the state’s Franchise Investment Act, he also said franchisees should be able to pursue certain allegations under another part of that state law.