A dispute has broken out with a number of business people who took franchises to operate Godfather Pizza outlets. Some of the individuals have threatened legal action against the company which runs the chain.
A number of people who took out franchises or were negotiating to open outlets allege they were misled by the company, and that guideline sales figures were significantly higher than franchisees could earn, and as a result they suffered sever losses.
One operator claims the running costs for their store was up to 22% higher than originally forecast by Godfather's. Godfather's has 23 branches in Ireland.
However, Godfather's said it was up the franchisees to make stores work and others were able to operate successfully. Its says it is up to franchisees to seek advice before agreeing to open outlets.
RTE understands no franchisees currently in operation have disagreements with the group but that five former franchisees, or people who were hoping to open outlets, are in dispute with Godfather's.
Godfather's confirmed it has had disagreements with some prospective franchisees. It said three people who ran stores opted to sell them and they are now
under new management and operating successfully. The company said it does not give projected turnovers but indications of potential sales.