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Coffee chain Muzz Buzz takes franchisees to court over missing drive through cafe

A BITTER dispute between a Darwin couple who were running Muzz Buzz drive through coffee franchise appears destined to go to trial in the Supreme Court

A safety fence surrounds the old drive thru site of the original Muzz Buzz franchise last year. Picture: Justin Kennedy
A safety fence surrounds the old drive thru site of the original Muzz Buzz franchise last year. Picture: Justin Kennedy

A BITTER dispute between a Darwin couple and Muzz Buzz over a drive-through coffee franchise appears destined for trial in the Supreme Court.

The couple, Kim and Rodney Cole, received national attention when they decided to cut ties with the national franchise by loading their coffee shop on to the back of a truck in a “black ops” style operation.

According to allegations contained in court records, released on Monday, the couple have “refused to reveal the whereabouts of the building or to make it available” to head office.

In their written defence to Muzz Buzz’s case, the couple say they were “entitled to physically remove the building as they owned it pursuant to the terms of the agreement”.

Muzz Buzz is seeking $51,494 in what it claims is unpaid rent, franchising fees and stock, plus interest and is also seeking an order that it be allowed to buy the building back from Mr and Ms Cole.

Rod Cole and Kimdelia Cole. Picture: Keri Megelus
Rod Cole and Kimdelia Cole. Picture: Keri Megelus

The couple, who opened their franchise in mid 2016, have filed a counter claim alleging head office overcharged them marketing levies, franchise fees and repeatedly sent stock to Darwin which was damaged or out of date.

The couple allege their complaints were not addressed and that they were left more than $37,000 out of pocket.

MUZZ Buzz offers reward for missing Darwin coffee shop

The couple also claim they were not provided correct invoices from head office and were also overcharged for equipment during the initial set up of the coffee shop.

The couple owned the 4x12m building, while Muzz Buzz leased the land it was on from Darwin Airport, although details about the lease remain in dispute.

Muzz Buzz claim the agreement it had with the couple entitled the company to buy the building if the franchise failed.

However, the couple claim the agreement “had no effect as (they) had already terminated the agreement … and the time within which to exercise any right … had elapsed”.

Following the late night disappearance of the drive-through coffee shop, the couple at the time told ABC radio they “had no choice” but to use a truck to remove the building in a “black ops” style operation.

Ms Cole told the NT News at the time: “We were pushed into a corner, we’re just little battlers just trying to run a business.”

Trial dates are due to be set down at a later date.

Original URL: https://www.ntnews.com.au/news/crime-court/coffee-chain-muzz-buzz-takes-franchisees-to-court-over-missing-drive-through-cafe/news-story/9b758358a9d3224d3005eb099ccc0d42