What was Sunil Dharod's counterclaim in the Gala Action against Cicis?

According to Cicis's 2025 Franchise Disclosure Document, Sunil Dharod's counterclaim in the Gala Action alleges that Anand Gala fraudulently misrepresented that he would present other restaurant investment opportunities to Dharod for potential participation. Dharod is seeking actual, consequential, and exemplary damages, as well as reimbursement of costs. The Gala Action was filed on January 23, 2024, in the District Court of Dallas County, Texas.

This counterclaim is part of a larger dispute between family members, Anand Gala and Sunil Dharod, regarding the acquisition and co-ownership of the Cicis Pizza brand. The original complaint 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 amend Smiley Slice's operating agreement, requiring payment of an excessive management fee and restricting members' rights to invest in other restaurant opportunities independently.

The outcome of this legal dispute could have implications for the management and financial stability of Smiley Slice, the post-acquisition franchisor of Cicis. Prospective franchisees should monitor the progress of this litigation, as it could potentially affect the franchisor's ability to support its franchisees. The document indicates that the consolidated action, including Dharod's counterclaim, is scheduled for a jury trial beginning July 7, 2025.

It is important for potential franchisees to understand the nature of any ongoing litigation involving the franchisor, as it can provide insights into the company's management practices and financial health. Franchisees should seek clarification from Cicis regarding the potential impact of this litigation on their investment and the franchisor's ability to fulfill its obligations.