Business & Tech

Sisters Being Sued by Moe's Italian Sandwiches

The NH sub shop is seeking thousands from Jolene and Becky Ecker.

Two sisters are being sued by the company that owns Moe's Italian Sandwiches after they closed a restaurant franchise in December in Wells, Maine, just one year into a 10-year agreement they signed to operate the business.

Attorneys representing the New Hampshire sandwich maker, which has two Moe's shops in Portsmouth, one in Exeter, one in Hampton and one in Concord, filed a petition in Rockingham County Superior Court against Jolene Ecker of Epping and her sister, Betsy Ecker of Portsmouth, according to court documents.

Attorneys Jeremy T. Walker and Neil B. Nicholson of the law firm McLane, Graf, Raulerson & Middleton in Manchester want a judge to force the sisters to turn over all of the former Moe's restaurant equipment and furniture that was housed at the location in Wells, Maine.

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Their argument is simple: the two Portsmouth women signed a 10-year franchise agreement to operate a Moe's Italian Sandwiches store in Wells for 10 years on Nov. 26, 2010 and closed the restaurant on Dec. 31, 2011. The lawyers representing Madmoe Corp., the parent company of the Moe's restaurant, said the agreement also called for the two women to turn over all restaurant equipment and furniture along with the keys if the agreement were terminated.

"The respondent's abandonment of the restaurant, without cause, only approximately one year into the 10-year term, is a clear default under the agreement," reads the petitioned filed by Madmoe's attorneys.

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On Monday afternoon, Jolene Ecker countered by saying that Cheryl Pagano, president of Moe's Italian Sandwiches, was not forthright with them when they signed their lease. For one thing, Ecker claims two other Moe's franchise owners failed in that same location in Wells because of a lack of business during the winter months.

Jolene Ecker also claims that Pagano knew the landlord didn't want to renew the lease with Moe's after one year so she contends there is no way the two sisters would have been able to fulfill the 10-year lease.

"We can’t help the fact that he didn’t want Moe’s in there, that is not our fault,” said Jolene Ecker.

In an affidavit filed in this case, Moe's Italian Sandwiches President Cheryl Pagano wrote that the decision made by the two women to abruptly close the Moe's franchise hurts the company's reputation.

"Moe's customers are unhappy when a Moe's franchise restaurant abruptly closes and stops providing services," Pagano wrote. "The Moe's franchise suffers harm for as long as existing customers aren't being serviced in Wells, Maine."

The Ecker sisters were being represented by Attorney Christopher Keenan of Portsmouth until Monday when they decided they could not afford his services and would represent themselves at the hearing scheduled to take place on Wednesday in Rockingham County Superior Court.

Jolene Ecker said the two women spent about $80,000 to renovate the commercial space in Wells, Maine, purchase all of the equipment and furniture and to pay Moe's the required franchise fees. She estimates that Moe's will seek at least $100,000 in damage and legal fees.

Jolene Ecker said their decision to close the Moe's in December was pure economics. “We knew that we wouldn’t be able to pay the vendors if we didn’t get out. I was not going to remortgage and spend my daughter’s college fund for Moe’s.”

She said she and Betsy Ecker plan to open a new business that they will own in the same location called "2 Sistahs" that will specialize in serving pasta and potato salads, mac and cheese and shepherd's pie to the seasonal campers and hotels guests who flock to Wells, Maine, in the summer.

Jolene Ecker said they will own the business and it will be seasonal. She would not recommend owning a franchise to anyone because she said, "you're nothing but a glorified manager."


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