mmaculate Confection, Ltd. (“Confection”), operator of the Canadian Rocky Mountain Chocolate Factory franchise network with over 50 corporate and owner-operated retail store locations, announced today it filed a lawsuit in the Supreme Court of British Columbia against Rocky Mountain Chocolate Factory, Inc. (NASDAQ:RMCF) (“RMCF”), operator of the international Rocky Mountain franchise network and licensor to Confection.
On June 21, 2021, Confection received a letter from RMCF purporting to formally terminate all remaining contracts between the parties, after having initiated formal legal proceedings against Confection in Colorado in March 2020. Confection intends to vigorously oppose RMCF’s attempts to terminate the parties’ ongoing business relationship.
Confection intends to pursue all available remedies, and will be seeking damages caused it by RMCF’s actions in an amount to be determined, including for the reduction in the value of the Canadian business. According to materials filed by RMCF in Colorado, the Canadian business had revenues of $365.6 million in the period from 2000 to 2019.