From The Jacksonville Business Journal:
The restaurant group behind Burrito Gallery filed suit Wednesday against the operators of the Burrito Gallery Express in Jacksonville Beach.
The suit states that the group that runs Burrito Gallery Express, REM Cousins, has breached its license agreement with Burrito Gallery and Bar, which is run by Gallery Restaurant Group.
The Burrito Gallery Express was recently named in a suit filed Wednesday, February 17, 2016.
REM Cousins was founded by Marco Monroy, Eddy Escriba and Josh Rodas. Monroy and Escriba are also part owners of Gallery Restaurant Group.
In May 2010, when REM planned to open Burrito Gallery Express, it got a "one-time license" to use the same theme and menu as the original Burrito Gallery location. Monthly license fees for the franchise were set at 7 percent of Burrito Gallery Express' total gross monthly sales.
The suit says Burrito Gallery Express has attempted to convert the "Burrito Gallery" name for its own use unlawfully, has not paid the licensing fees required and has not submitted the financial reports required, according to documents filed with the U.S. District Court's Middle District of Florida Wednesday.
Due to the breach, Burrito Gallery is revoking its license to the Burrito Gallery – and Burrito Gallery Express name – as well as demanding it stop serving Burrito Gallery menu items.
The lawsuit says that because REM has defaulted on the licensing agreement, it's exercising its rights to force Monroy and Escriba out of the Gallery Restaurant Group, buying out their shares. "We will be in touch with you later regarding a time to close on the purchase of your stock," the Gallery Group's attorneys said in a letter.
Burrito Gallery has been a longtime fixture in Downtown Jacksonville, opening its location on Adams Street in 2005. It opened its Brooklyn location in January.
Doesn't this just pertain to the beach location? I didn't think this had anything to do with the Downtown one.
Quote from: stephendare on February 19, 2016, 11:40:45 AM
I think basically what this is about is that the original team sold majority shares to John Valentino and his partners.
They Made Burrito Gallery profitable after reorganizing management and kitchen practices and extending the hours (and making them regular).
Seems to me they held their own for many years operating just the two locations (plus Uptown). Maybe it wasn't quite enough to make ends meet though. I've never been privy to their books. Or maybe the call of franchise money was just too loud.
Quote from: stephendare on February 19, 2016, 11:40:45 AM
Marcos and co apparently opened an express version of the concept at the beaches as a separate entity, but paying Burrito Gallery a license for using the corporate name (and probably sharing commissary expenses and bulk ordering advantage.)
They haven't been paying the licensing fee, which basically means that they've been using the corporate name without having the right to do so.
Burrito Gallery Express was originally opened and managed by Josh Rodas, a cousin of Marco's who lived at the beach. However, Josh moved up north quite a few years ago with his wife and left the Express location for others to manage, to the best of my knowledge.
Quote from: stephendare on February 19, 2016, 11:40:45 AM
In the shareholders agreement there is apparently a provision that forces the buy out of their shares in these conditions. So triggering the licensing suit, also triggers the buyout.
If it goes terribly, the worst thing that will happen is that they get paid for their shares and have to start with a new branding concept.
If it all goes terribly, the worst thing that will happen is Valentino will get a shiny new Burrito Gallery on Beach and 3rd Street with rooftop views and no competition from Burrito Gallery Express ;)
Quote from: Steve on February 19, 2016, 11:51:07 AM
Doesn't this just pertain to the beach location? I didn't think this had anything to do with the Downtown one.
This seems to be the loophole needed to wrestle the entire concept away from the original creators, if the subtext of the news reports are correct. I hope it isn't the case.
Quote from: stephendare on February 19, 2016, 12:08:59 PM
except thats not what they are asking for. They are asking for the group to stop using the name and the trademark menu items (or pay up the licensing fee)
This is a new building, not the old one that used to be on A1A, this one is on Bch Blvd.
I didn't see an option for repayment of licensing fees anywhere in that terse "we are buying you out of your partnership" quote. And I can't imagine the new Burrito Gallery opening at the beach with a second established Burrito Gallery less than a mile away, serving much of the same food. I guess this problem had to be solved. It's just a shame how they're going about it.
Seems someone should loan Valentino a copy of Dale Carnegie
So, I just re-read Alexa Epitropoulos' full article (I'm a JBJ Subscriber), and I didn't pick up any sort of indication that this had anything to do with Downtown. In fact, the only mention was simply that it's been a downtown staple for a decade.
Could this simply be that the franchisee didn't pay?
Quote from: Steve on February 19, 2016, 12:45:24 PM
So, I just re-read Alexa Epitropoulos' full article (I'm a JBJ Subscriber), and I didn't pick up any sort of indication that this had anything to do with Downtown. In fact, the only mention was simply that it's been a downtown staple for a decade.
Could this simply be that the franchisee didn't pay?
Two of the three men listed in the article (Escriba and Monroy) are also involved with the downtown location and Uptown.
Quote from: joshuataylor on February 19, 2016, 12:57:18 PM
Quote from: Steve on February 19, 2016, 12:45:24 PM
So, I just re-read Alexa Epitropoulos' full article (I'm a JBJ Subscriber), and I didn't pick up any sort of indication that this had anything to do with Downtown. In fact, the only mention was simply that it's been a downtown staple for a decade.
Could this simply be that the franchisee didn't pay?
Two of the three men listed in the article (Escriba and Monroy) are also involved with the downtown location and Uptown.
I could be wrong, but if the downtown location was involved I would have thought the author would mention it. Is it safe to assume that they are minority partners with the downtown one?
I mean, I guess connecting the dots if there was a falling out with these folks they might want out of the downtown one, which could cause some issues. It just doesn't seem like Valentino is trying to screw anyone-at least based on what I know (which may not be everything).
You seem a little more connected to this one. Do you know the beach folks?
As Josh mentioned above with his background info, Eddie and Marco are (were?) partners involved with more than one restaurant. That, and the name 'Burrito Gallery' is pretty much the only thing that is shared with the DT location.
The beach location on A1A, again as Josh (Taylor) mentioned, was Josh's (Rodas) baby, but his cousins took over when he (Rodas) left for NC.
I really don't have an inside opinion on why things are going down the way appear to be, but it seems to be that some were content with the way things are and some want to push for more, but I haven't really given a whole lot of though or had a whole lot of conversation about it.
Are they trying to "force them out" or just make them pay the franchise agreement?
Has anyone from MJ reached out to get Antonio's take on things either on or off record? I realize that for the most part he's the 'silent' partner, but his silence on something like this could be quite damning.
What's there to franchise in burrito business? Last ludicrous franchising opportunity I heard of was French fry heaven. They are not at the town center anymore
Expand nationally? Cause there are no cheap Mexican places in this great country of ours? I always thought Burrito Gallery worked because it was the only "quick Mexican" choice downtown.
Quote from: MusicMan on February 20, 2016, 06:39:58 PM
Expand nationally? Cause there are no cheap Mexican places in this great country of ours? I always thought Burrito Gallery worked because it was the only "quick Mexican" choice downtown.
Exactly. Hardly a unique concept. And while it's good, it's good because it's in a place completely devoid of food options. Expanding nationally would be as big of a mistake as Woody's expanding to Canada!
Probably a lost cause to get people to stop referring to places like Burrito Gallery as "Mexican," huh.
It's Tex-Mex, not Mexican. Burrito Gallery is no more "Mexican" than Chipotle, Tijuana Flats, etc. (I am not denigrating Burrito Gallery, a place I like. It's just not Mexican cuisine.)
Quote from: funwithteeth on February 21, 2016, 09:47:44 AM
Probably a lost cause to get people to stop referring to places like Burrito Gallery as "Mexican," huh.
It's Tex-Mex, not Mexican. Burrito Gallery is no more "Mexican" than Chipotle, Tijuana Flats, etc. (I am not denigrating Burrito Gallery, a place I like. It's just not Mexican cuisine.)
ha, totally agree...which is why i said 'food options', not 'Mexican options' ;D
Quote from: BennyKrik on February 19, 2016, 06:09:16 PM
What's there to franchise in burrito business? Last ludicrous franchising opportunity I heard of was French fry heaven. They are not at the town center anymore
And their planned location across the street from Hamburger Mary's failed before it even opened its doors.
Their website still lists St. Augustine, The Avenues, and SJTC locations as open though.
Went to BG downtown for the first time since the ousting of some of the core founding partners. It was a ghost town on a Thursday night. Service was spotty (for it being completely empty). While the food was better than what I had at the Brooklyn location, it was a tad cold, like it had sat in the food window for a couple minutes. And the food came out all at different times.
Also, I got the strange vibe that BG could leave downtown since the ownership is no longer folks dedicated to downtown but rather dedicated to making money and expanding the franchise. Anyone know if the proposed updates/expansion to the location are still in the works?
We went on Friday night and it was packed with a bunch of poke-freaks lol
BG is doing well. He's a top notch restaurateur and we're lucky to have him in Jax.