YOGURTLAND Australia has dropped a legal case against a franchisee who lost more than $500,000 in a failed store.
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A Newcastle Herald investigation revealed earlier this year that Trevor and Karinne McDougall were one of four couples from the Hunter and Central Coast who signed on as Yogurtland franchisees and opted out of their struggling stores amid disputes over disappointing turnover and profits.
Yogurtland, a United States-based frozen yoghurt chain, was brought to Australia by Newcastle accountant and self-made millionaire Paul Siderovski in 2013.
The McDougalls, of the Central Coast, bought a franchise in Western Australia for $370,000, excluding GST, and ended up pouring an additional $168,000 into the store. After it failed, Yogurtland Franchising pursued the McDougalls in court for $52,000 in allegedly unpaid yoghurt bills.
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The matter was previously adjourned due to Mr McDougall suffering stress-related illnesses.
Yogurtland solicitor, Anthony Foate of Catalyst Legal, said on Thursday that noting Mr McDougall's illnesses, Yogurtland thought it was the "proper thing" not to pursue the case.
"Accordingly, the claim has been withdrawn by consent," he said.
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