What claims did Carls Jr.'s Counterclaim assert against 6Points?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
scribed above. On August 30, 2016, the defendants served the Statement of Defence of all defendants and CJR's Counterclaim. The Statement of Defence denies all liability and requests that the action be dismissed.
On August 30, 2016, the defendants served the Statement of Defence of all defendants and CJR's Counterclaim. The Statement of Defence denies all liability and requests that the action be dismissed. CJR's Counterclaim names 6Points, Michael Meekins and Michael Levine as defendants ("Franchisee Parties"). The Counterclaim asserts claims against 6Points for breach of its development, franchise, and letter of credit agreements, and for anticipatorily repudiating the development and franchise agreements, as well as for breach of its obligation of fair dealing. The Counterclaim asserts claims against Michael Meekins and Michael Levine for breach of a contract to provide a letter of credit, and asserts that they are liable for payment of all amounts owing by 6Points pursuant to a personal guarantee. The Counterclaim claims damages in an amount to be proven at trial.
On November 16, 2016, 6Points, Michael Meekins and Michael Levine served a Reply and Defence to Counterclaim. The Defence to Counterclaim denies all liability of 6Points, Michael Meekins and Michael Levine and requests that the Counterclaim be dismissed. On December 5, 2016, CJR served a Reply to Defence to Counterclaim. On December 19, 2018, the Court ordered, 6Points to deliver documents to CJR in preparation for further discoveries. On or about October 12, 2022, the parties reached an agreement to settle the litigation with the following terms: (a) defendants agreed to pay Franchisee Parties $5,500,000 US dollars, (b) the parties agreed to mutual releases
Source: Item 3 — LITIGATION (FDD pages 22–26)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the Counterclaim that CJR (Carl's Jr. Restaurants LLC) asserted against 6Points included multiple allegations. These claims were for breach of development, franchise, and letter of credit agreements. Additionally, the Counterclaim alleged that 6Points anticipatorily repudiated the development and franchise agreements, and breached its obligation of fair dealing. The Counterclaim also targeted Michael Meekins and Michael Levine, asserting they breached a contract to provide a letter of credit and were liable for all amounts owed by 6Points due to a personal guarantee. Carls Jr. sought damages, the amount of which was to be determined at trial.
In simpler terms, Carls Jr. claimed that 6Points failed to uphold their contractual obligations in several ways, including not fulfilling development and franchise agreements, and not acting fairly in their dealings. Furthermore, Carls Jr. held Meekins and Levine responsible for the financial obligations of 6Points, citing a personal guarantee and a failure to provide a letter of credit. The specific dollar amount that Carls Jr. was seeking was not defined at the time of the Counterclaim, but would be determined during the trial.
Ultimately, the litigation between Carls Jr. and 6Points, along with Meekins and Levine, was settled. The defendants agreed to pay the Franchisee Parties $5,500,000 US dollars, and all parties agreed to mutual releases of all claims, including those arising from the litigation. This settlement was reached without any admission of liability from any party, and the court dismissed the case on October 14, 2022.