Subway 24131, which owns a Subway franchise on 152nd Street in Miami, says it had nothing to do with a Groupon for 80 percent off items at its location that went live on June 20, 2015.
Now the franchisee wants the 11th Judicial Circuit Court to award it punitive damages for misrepresentation, negligence, fraud, conspiracy and other claims.
The store says it learned about the “unauthorized promotion” when its employees “were bombarded by angry customers demanding that the Subway Groupon be honored.”
Though Subway 24131 has owned the location in question since 2011, and “readily available public records” document this, Groupon agreed to create the deal for an unaffiliated person named Ivan Martinez, according to the Aug. 14 complaint.
“Notably, Groupon never requested any documentation from Ivan Martinez to prove ownership or authorization before Groupon began marketing and selling the Subway Groupon,” the complaint states.
Martinez is named as a defendant to the action, but Subway 24131 notes that Groupon has refused to provide it information on the man.
All in all, “Groupon’s response was nothing less than atrocious” when the franchisee requested the immediate removal of the unauthorized Groupon, according to the complaint.
“Groupon denied Subway 24131 the ability to remove the unauthorized Subway Groupon and proceeded to take steps to shield information related to Ivan Martinez,” the complaint states
It took “repeated calls from counsel” and “proof of ownership” to have Groupon “reluctantly” remove the deal, Subway 24131 claims.
Customers are still coming in, trying to redeem the unauthorized Groupon “for a free six inch sandwich when buying a six inch combo meal,” according to the complaint.
While Groupon has “fully retained” the money it collected from customers who bought the deal in June, Subway 24131 says it “has and continues to suffere a financial loss and substantial damages.”
“Upon information and belief, Groupon intentionally created, marketed, and sold the Subway Groupon without authorization in an effort to generate new marketing materials and add new merchants to its business records,” the complaint says.
Subway 24131 is represented by Jose Mysorewala.
Groupon has not returned a request for comment on the lawsuit.
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