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A story about RedBrick Pizza Worldwide Inc. ("Palmdale Pizza Chain Finds Franchise Woes," April 30, 2007) contained several errors.

There are currently four master developers that have filed lawsuits against RedBrick Pizza, not eight lawsuits as the earlier story reported.

The

other lawsuits referred to in the previous story were either previously settled or were never filed against the RedBrick organization.

In particular, one lawsuit discussed in the story was brought by investors in a company called Cafe Concepts, which was partly owned by James D. Minidis and Lynn Minidis. James Minidis and Lynn Minidis are now owners of RedBrick, but the lawsuit had nothing to do with the RedBrick franchise system.

The story also referred to the plaintiffs in these lawsuits as area franchisees. They are master developers who buy larger territories and then resell individual franchises within those territories.

RedBrick has asked the court for and received preliminary injunctions against two of the master developers. At the time of this writing, the company has not requested preliminary injunctions in the other two cases.

The story did not reflect RedBrick's point of view concerning the termination of the Jay Bharat master development contract. Leo A. Bautista, attorney at Lewis Brisbois Bisgaard & Smith LLP, who represents RedBrick, said Bharat was given one year to correct compliance problems and did not do so.

A quote attributed to James W. Denison, attorney for one of the plaintiffs, Jay Bharat Development Inc., incorrectly described the reason the company has not sold as many franchises as it expected. Denison said RedBrick's disclosure problems caused Bharat to wait one-and one-half years to be able to start selling franchises and now it is having to wait to resolve its claims.

In addition, make sure to read these articles:

What Is the New Franchise Disclosure Document?
Interview with franchisee attorney Julie Lusthaus with the law firm of Einbinder and Dunn.