Tony Luke’s named in franchise suit
Posted Under: Franchise News
South Philadelphia cheesesteak entrepreneur Anthony Lucidonio Jr. and his Tony Luke’s sandwich chain are named as defendants in a lawsuit filed Monday in Monmouth County Superior Court in New Jersey. The suit by AKL Food Service L.L.C. alleges that Lucidonio and others misrepresented a Tony Luke’s franchise opportunity.
The complaint alleges that Tony Luke’s induced AKL’s managing member, Anastasios Linardos, into purchasing the rights to open and operate New Jersey’s first Tony Luke’s franchise – which debuted in Hamilton Township in December 2007 – by grossly understating start-up and operational costs, artificially inflating sales projections, and making unlawful earnings claims. As a result, AKL has lost at least $9,000 per month for the last two years, the lawsuit alleges. Those losses are forcing AKL to close its Tony Luke’s restaurant, the lawsuit alleges. Lucidonio could not be reached for comment. – Diane Mastrull
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Reader Comments
Hate to see this kind of bad news in the franchise world.