NRN: El Pollo Loco Ordered to Pay $8.8M in Damages to Franchisee

Nation’s Restaurant News reports a California jury has found in favor two El Pollo Loco franchisees who sued the chicken franchise over a territory dispute. The franchisor was has been ordered to pay nearly $9 million in damages.

Franchisees Michael and Janice Bryman are the owners of an El Pollo Loco store in Lancaster California. There’s was the only unit in that territory until 2015, when El Pollo Loco opened a corporate-owned store 2.2 miles away from the Bryman’s store. The Brymans brought suit against the franchisor, alleging that the corporate-owned store breached an implied covenant of good faith that should have given them first right to any development in the territory.

“We are disappointed by the verdict and intend to vigorously appeal,” a representative from El Pollo Loco told NRN in a statement. “We are confident that the claims are not supported by applicable law or by the weight of the evidence presented during the trial. For more than 30 years, El Pollo Loco has been a champion of its franchisees and has a long track record of exemplary franchise relations. We believe the facts will prevail.”