Owners of a failed Burger Edge CBD franchise told to pay up

The owners of a failed Brisbane burger joint who paid only $1000 up front for the franchise have been ordered to pay the remaining $94,000.

THE owners of a failed Burger Edge franchise, who paid only $1000 up front for the Brisbane CBD business, have been ordered to pay the remaining $94,000 they owed.

A magistrate found Campbell Swinton and John Thompson and their then company Jupiter Ventures did not adequately try to help the franchisor mitigate their losses at the QueensPlaza eatery.

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Mr Campbell and Mr Swinton were guarantors of their business.

Jupiter Ventures claimed the debt was not owed because under the business sale contract it had been terminated when they were locked out by their landlord and could no longer run the business.

The Original Edge burger! Two men who bought a CBD Burger Edge franchise “struggled operating the business almost from the start” said a Brisbane magistrate.

The director of Burger Edge Franchising Issam Soubjaki produced evidence of text messages and emails, sent between 2015 and 2017, which revealed the rent was behind.

Mr Soubjaki also made efforts to obtain financial information from Mr Thompson and Mr Swinton, “but they could not or would not” provide them at a time when there was interest in the business, court documents stated.

“Mr Soubjaki tried to assist the defendants re-sell the business but was thwarted in these efforts when no adequate financial information was forthcoming from the defendants. No re-sale of the business eventuated,” Magistrate Anne Thacker wrote in her findings.

The business was not sold.

In her May 2 decision, Magistrate Thacker said the defendants struggled operating the business almost from the start, which was why they requested a 12-month extension to pay the $94,000 debt.

Two men who ran a failed Burger Edge franchise have been ordered to pay the remaining $94,000 for the purchase of the business. Pic supplied.

She said the defendants’ written submission stated they paid $45,000 for a franchise fee, a $3500 application fee and a $4500 training fee.

“That may be so, but there is no evidence that the parties intended these monies to form any part of the purchase price of the business or be subtracted from the business purchase price of $95,000.

“Accordingly, I must disregard this assertion.”

She also found Mr Soubjaki did adequately try to help them re-sell the business to help mitigate the business’s loss and the guarantors are liable.

Magistrate Thacker decided the defendants were liable to pay $94,000 to Burger Edge Franchising and also costs of $37,940 plus interest.