El Pollo Loco Franchisees Win $8.8M In Territory Dispute

Law360 (May 3, 2018, 3:34 PM EDT) -- A California jury has handed an $8.8 million win to a husband-and-wife El Pollo Loco franchisee team claiming the fire-grilled chicken chain improperly encroached on their territory by not offering them the right to operate two restaurants the company built in their restaurant's immediate vicinity.

In the damages phase of a bifurcated trial, the jury entered its verdict Tuesday that franchisor El Pollo Loco Inc. breached the implied covenant of good faith and fair dealing in its agreement with franchisees Michael and Janice Bryman when it opened the two competing corporate-owned restaurants close to the couple's existing eatery in Lancaster, California....

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