News

Dairy Queen sues disgruntled franchisee

February 17, 2011

Dairy Queen is suing a former Iowa franchisee for $13 million over an alleged extortion attempt.

According to a story in the Minneapolis / St. Paul Business Journal, Dairy Queen wants a federal judge to sever its ties with the operator of four Iowa stores. The franchisee says he has information that would cause $100 million in damage to the company. Dairy Queen also wants the company to issue a court order to keep the frenachisee, Guy Blume, from defaming the company.