![]() ![]() While Domino’s claimed they got 99.7% and that they will be funding the three no votes, the true facts were a little less clear. ![]() In order for this advertising and promotion amendment to pass, Domino’s was required to get 100% votes from these franchises. The CEO, officers, the board of directors, and employees increased the value of their stock options with stock repurchases and issued a $3 per share special dividend.” The detailed report from the corporate insider stated that Domino’s was pushing this change in order to increase the value of their own stocks.įorbes reported on this case and stated that, “Domino’s Pizza began to ‘orchestrate’ a new round of recapitalization on March 15, 2012, with the placement of certain subsidiaries for a $1.675 billion securitized debt facility. However, there was allegedly a hidden agenda behind this shift that leads to even more shady practices. Dominos’ also stated that for the support of these franchises in this endeavor, they would extend the standard profit-sharing agreement by five years. Many franchisors were under the belief that this shifting of funds would lead to an extra $25 million or about $5,000 for each store of system-wide incremental profits. This would increase its current 5.5% rate to 6%. Domino’s requested all franchisees to agree to an increase of 0.5% for marketing. The heart of the case began in 2012 when Domino’s proposed raising the money the corporation would spend on advertising and promotion. ![]() On February 19, 2019, the franchise community website Blue MauMau reported that “ corporate insider has filed a well-documented whistleblower report with the against Domino’s Pizza, its top-level officers, and various staff members.” Domino’s allegedly forced an unapproved advertising increase to franchisees in order to pay a $1.85 billion Securitization Transaction to gain higher stock prices and dividends.ĭetails of this case came directly from a concerned insider at Domino’s Pizza who noticed the presence of possible misconduct and decided to blow the whistle on this major pizza chain. This case involves general misconduct and an alleged scheme involving misleading franchisors and fraudulent investments. While everyone enjoys a nice slice of the pie, Domino’s Pizza has had a corporate insider file a detailed whistleblower report with the SEC against top-level officers and various staff members. ![]()
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