What was the date the Gala Action was filed concerning Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
*GCP Cici's, LLC v.
Sunil D.
Dharod, as Trustee of The Sunil D.
Dharod Revocable Trust, SSCP Management, LLC, and OnWin, LLC*, Case No.
DC-24-01196, District Court of Dallas County, Texas, filed January 23, 2024 (the "Gala Action"), and *Smiley Slice, LLC and Sunil D.
Dharod v.
Anand Gala*, Case No.
DC-24-03968, District Court of Dallas County, Texas, filed March 12, 2024 (the "Dharod Action").
These are related actions that present disputes by family members, Anand Gala ("Gala") and Sunil Dharod ("Dharod"), arising out of their acquisition and co-ownership of the Cicis Pizza brand.
The complaints allege that, following the acquisition of the Cicis Pizza brand, 30% of the ownership of Smiley Slice, the post-acquisition franchisor of the Cicis brand, was held indirectly and controlled by Gala, 70% was held indirectly and controlled by Dharod, and Gala was appointed as Smiley Slice's chief executive officer.
The plaintiff in the Gala Action alleges that Gala was not paid for his services as Smiley Slice's chief executive officer and that Dharod used his majority position to, among other things, amend Smiley Slice's operating agreement to require payment by Smiley Slice of an excessive management fee that diluted the value of Smiley Slice and to restrict the members' rights to invest in other restaurant opportunities independently of each other.
The plaintiff seeks unspecified damages, injunctive relief and costs based on claims of breach of contract, breach of fiduciary duty, fraud, and civil conspiracy.
On March 11, 2024, the defendants in the Gala Action denied the plaintiff's allegations, and Dharod asserted a counterclaim alleging that the plaintiff fraudulently misrepresented that it would present other restaurant investment opportunities to Dharod for potential participation.
Dharod seeks actual, consequential and exemplary damages and reimbursement of costs.
Source: Item 3 — LITIGATION (FDD pages 10–11)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, the Gala Action, officially titled GCP Cici's, LLC v. Sunil D. Dharod, as Trustee of The Sunil D. Dharod Revocable Trust, SSCP Management, LLC, and OnWin, LLC, was filed on January 23, 2024. This action was brought before the District Court of Dallas County, Texas. The document also references a related action, the Dharod Action, indicating ongoing legal disputes among family members related to the acquisition and co-ownership of the Cicis Pizza brand.
The Gala Action alleges that Anand Gala, who held 30% ownership of Smiley Slice (the post-acquisition franchisor of Cicis), was not compensated for his role as CEO. The complaint further claims that Sunil Dharod, controlling 70% ownership, misused his position to amend Smiley Slice's operating agreement, imposing an excessive management fee and restricting members' independent investment opportunities. The plaintiff in the Gala Action is seeking unspecified damages, injunctive relief, and costs based on claims of breach of contract, breach of fiduciary duty, fraud, and civil conspiracy.
Prospective Cicis franchisees should note that these legal disputes involve the ownership and management of the Cicis brand itself. While the FDD indicates that the defendants in the Gala Action denied the allegations and asserted a counterclaim, such litigation can create uncertainty and potentially impact the franchisor's stability and decision-making. It is important for potential franchisees to carefully review Item 3 of the FDD, consult with legal counsel, and seek clarification from Cicis regarding the potential impact of these ongoing legal matters on the franchise system.