USA: Former Licensee Alleges Guess? Inc Operates Illegal Franchises
The former licensee of Baby Guess and Guess Home Collections, seeking to overturn a $7.7 million arbitration award, filed suit on June 19 in Superior Court charging that Guess? Inc, the Los Angeles-based apparel retailer, has been operating illegal franchises. Pour le Bebe Inc (PLB), Guess?'s largest licensee for 15 years until its four licenses were suddenly revoked in May 1999 over a controversial royalty dispute, alleges that the agreements between the two companies were in fact illegal franchises, thereby nullifying the recent finding of an arbitration panel.
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