Barbeque restaurant chain Famous Dave’s of America has been prevented from opening, advertising or operating any new outlets in the Dallas market by a temporary restraining order.
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The order was granted by a Texas state court judge to Colter’s Restaurants, Colter’s Franchise and McGuire Properties on 19 August. The companies allege breach of confidentiality agreements between Famous Dave’s and Colter’s Restaurants during 2001 and 2002, when the two companies negotiated the potential sale of certain Colter’s Dallas-based properties market to Famous Dave’s.
Ken Stanecki, CFO of the Minneapolis-based firm, said: “We are disappointed that the court granted this temporary restraining order, ex parte and without our knowledge or participation, but, obviously, we will adhere to the ruling.”
“We believe that the claims are frivolous, however,” he added: “We will be vigorously pursuing vindication in the courts.”
The judge, presiding in the 44th Judicial District Court of Dallas County, in Texas, scheduled a hearing on the matter on 30 August at which time Famous Dave’s will ask that the restraining order be dissolved and that Famous Dave’s be allowed to operate in the Dallas market without restriction.
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By GlobalDataFamous Dave’s opened its first Dallas area restaurant on 19 August in Mesquite, Texas. Its second restaurant in the market is scheduled to open Monday 26 August in Lewisville, Texas.
