A second whistleblower complaint has been filed against Dominos by a former franchisee filed a second whistleblower to the Securities and Exchange Commission against Domino’s Pizza and its executives. The newer one alleges the company mislead investors in its SEC Filing 10-K that falsely specified franchisees were not required to purchase food and supplies from the franchisor, nor was it agreed by a 100 percent unanimous vote by franchisees to increase Domino’s advertising fund.
The original September 2013 SEC complaint says Domino’s 2012 franchise disclosure document was incomplete and failed to comply with Federal Trade Commission requirements regarding Item 3, which reveals litigation history.
The former franchisee details the multiple issues in conjunction with his previous complaint. He outlines how company employees and franchisees stated in depositions in his litigation with Domino’s that franchisees are required to purchase supplies from Domino’s commissary. But Domino’s SEC Filings 10-K states it differently. It says:
“. . . while over 99% of domestic franchisees purchased food, equipment and supplies from us in 2013, domestic franchisees are not required to purchase food, equipment or supplies from us” and “our franchisees voluntarily choose to obtain food, supplies and equipment from us.”
by us, our franchisees and other third parties, none of these additional funds are legally required.”
Jeffrey Newman represents whistleblowers