The California franchisees allege that CDWI sold them a franchise without the availability of the trademark, as they were threatened with a lawsuit by Compact Disc Warehouse of California over trademark infringement and forced to change the name of their stores by CD Warehouse.
Hearings should be scheduled early next year in the case, in which CD Partners seeks $7 Million in damages from CDWI.
The CDWFA had invited all franchisees, members and non-members, involved in the CDWI system to participate in the conference call.
It is quite obvious that CDWI is still not on the same page with franchisees when Chris Salyer speaks of 'positive sales trends' in his latest press release.
I finally feel included and I am happy to see that there are other people who were willing to step up and think about what franchisees need and want," stated Chris Burch, a CDWI franchisee from Kentucky.
Boushka also stated that the recent filing of an arbitration demand against CDWI
by Paul and Peggy MacDougall, members of the CDWFA, was a unilateral action taken by the MacDougalls.
This filing is the latest in a series of disputes between CDWI
and its franchisees.
I suspect, in fact, that if you wanted to buy 100 stores or more tomorrow, CDWI
franchisees would stand in line to sell out.
As a result of various operational changes in CDWI company owned stores, the company realized a decrease in retail store operating expenses for the three-month period.
CDWI incurred a net loss for the quarter before impairment charges of $450,000, compared to a net loss before impairment charges of $831,000 in the comparable 2000 quarter.