Vocelli Pizza Inc. has been burned by its Italian Oven connections.
The Scott-based pizza chain last year agreed to send an employee to franchise law compliance training after the Maryland securities commissioner alleged the company had not properly disclosed that four executives had filed for bankruptcy protection within the previous decade.
It also had to notify three different Maryland franchisee groups that they could back out of their deals.
Though Vocelli agreed to the consent order, it did not admit or deny any violation of a federal law aimed at protecting franchise investors.
Some Vocelli executives had been part of the Latrobe-based casual dining Italian Oven chain that went public in 1995 and filed for bankruptcy a year later. Franchise law requires disclosure of such issues, said Dale E. Cantone, Maryland assistant attorney general.
The 2004 Maryland consent order came to light in a new lawsuit against Vocelli by franchisees who operate pizza restaurants in Hermitage and in Boardman, Ohio.
Christopher, Dennis and Sabine Lacher, who are seeking a return of their franchise fees and a buyout of their operations, allege the executive issues were not disclosed to them, either.
Their suit, filed last month in Allegheny County Common Pleas court, also complains about a call center operation that the franchisor has set up.
Vocelli declined comment on the suit but noted the company, formerly known as Pizza Outlet, was recently ranked 37th in Pizza Today Magazine's Hot 100 list of pizza franchise companies in the United States.
"I can say Vocelli Pizza is proud of our relationship with our franchise partners and we do our utmost to comply with all state and federal franchise requirements and regulations," said Jim Powers, director of marketing.