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SPoT Coffee suing former North Tonawanda franchisee

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Posted at 11:36 AM, Jan 28, 2022
and last updated 2022-01-28 11:36:52-05

NORTH TONAWANDA, N.Y. (WKBW) — SPoT Coffee is suing its former North Tonawanda location franchisee.

According to court documents, the suit is the result of "neglectful and inappropriate actions of Ralph Dailey, managing member of commercial redevelopment entities, in their capacities as franchisee and ultimately lessor to commercial tenant, SPoT North Tonawanda."

The SPoT Coffee, located at 54 Webster Street in North Tonawanda, opened in February 2021 and according to the court documents closed in January 2022.

The lawsuit alleges Dailey abused the franchisee relationship and failed to fulfill his promises to redevelop the building which forced SPoT to buy-back the property.

"Dailey’s flagrant disregard for his obligations have cost SPoT a significant amount of time, money and effort, and have threatened the health and safety of its customers and staff," the lawsuit says.

According to the lawsuit, in 2019 Dailey approached SPoT about his plans to redevelop 54 Webster Street. As a result SPoT entered into a franchise agreement with Destination WNY LLC, which Dailey is a managing member of, where Destination WNY would operate the the SPoT cafe at the location.

The actions of Dailey during Destination WNY's operation allegedly led to SPoT purchasing the cafe back and operating it as a corporate-owned location while Dailey restarted construction and development. The franchise agreement was terminated on July 31, 2021.

The lawsuit continues on to say when the franchise agreement was terminated SPoT entered into a lease agreement with WebsterNT LLC, which Dailey is a managing member of, for operation of the cafe.

According to court documents conditions at the cafe didn't improve even after SPoT assumed management and WebsterNT's breaches led to SPoT terminating the lease and vacating the building.

SPoT is seeking an award of monetary damages.

A spokesperson for WebsterNT LLC declined to comment.