MTY BEGAN 2020 WITH 6,989 FRANCHISES. IT CLOSED 1,324 (18.3%) LOCATIONS IN 2020 AND A TOTAL OF 1,769 IN THE FOUR YEARS BEFORE THE PANDEMIC (AVERAGE 442 OR 9.3% PER YEAR). THAT’S A TOTAL OF 3,093 LOCATIONS CLOSED IN THE LAST FIVE YEARS. IF YOU ARE CONSIDERING BUYING ANY MTY OR KAHALA FRANCHISE LISTED BELOW, WE STRONGLY SUGGEST YOU LEARN ABOUT SOME OF THE RISKS OF OWNING AN MTY FRANCHISE. YOU SHOULD ALSO KNOW THAT MTY RECEIVED $64 MILLION IN KICKBACKS IN 2019—AN INCREASE OF MORE THAN $8 MILLION FROM THE PRIOR YEAR.
KICKBACKS CAUSE FRANCHISES TO FAIL!
The Forbes Article
Updated June 20, 2021
In January 2020, our attorney provided MTY, Cold Stone and Kahala with notice of whistleblower allegations. On February 13, 2020, their attorney responded stating, the website included inaccurate portrayals and warned of potential consequences resulting from its publication, but specifically declined to identify any false or misleading statements. MTY announced the allegations on February 14, 2020 and its stock plummeted. MTY, Lefebvre and O’Connor’s false statements on February 24, 2020 claiming the allegations were reported by an MTY “active employee”, were previously “dealt with” and are “baseless” therefore meets the TSX definition of a “misleading news release”.
On March 9, 2020, Forbes published an article titled “MTY’s Delayed Earnings Call Leaves Analysts Baffled With Few Answers On ‘Whistleblower’ Claims” which called MTY, Lefebvre and O’Connor’s truthfulness into question. MTY’s stock again plummeted.
In addition to the Forbes article, securities and franchise investors should read the details of MTY’s efforts to cover up the allegations and MTY, Lefebvre and O’Connor’s false statements.