Who else, besides 6Points, was named as a defendant in Carls Jr.'s Counterclaim?
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, in a counterclaim served on August 30, 2016, by CJR (Carl's Jr. Restaurants LLC), the defendants named, besides 6Points, were Michael Meekins and Michael Levine. The claims against 6Points included breach of development, franchise, and letter of credit agreements, anticipatory repudiation of these agreements, and breach of fair dealing obligations.
The counterclaim against Michael Meekins and Michael Levine specifically alleged breach of a contract to provide a letter of credit. It also asserted that they were liable for all amounts owed by 6Points due to a personal guarantee. The document states that CJR sought damages in an amount to be proven at trial.
Ultimately, on October 12, 2022, the parties reached a settlement where the defendants agreed to pay the Franchisee Parties $5,500,000 US dollars. All parties agreed to mutual releases of claims, including those from the litigation, without any admission of liability. The court then dismissed the case on October 14, 2022.