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Also, The Upper Crust Screwed Franchisees Via Groupon

Photo: Cal Bingham

Incredibly, there's yet another account of bad behavior by The Upper Crust, which has temporarily and perhaps permanently shuttered most of its locations. In addition to owing employees over $800,000, exploiting workers from Brazil, declaring bankruptcy, abruptly closing ten locations and thereby letting go of 140 employees (but paying executives a month's salary first) and cannibalizing itself with internal lawsuits, The Upper Crust also pirated funds from franchise operators on its way out. The Globe reports that the company sold "thousands of discount vouchers on Groupon" without telling its franchisees, who honored the vouchers but were never reimbursed, because the company kept all the proceeds prior to declaring bankruptcy.

An independent owner of The Upper Crust in West Roxbury says the experience cost them "approximately $23,000 in product for Groupons that we have already redeemed." Some more numbers: Groupon offered $12 vouchers worth $25 worth in food, and independent operators were supposed to get $9 from the company. ­The Globe reports that 6,000 of the vouchers were sold.

Guessing game: what bad business practices do you think The Upper Crust will be accused of next?

· Franchisees riled over Upper Crust's discount vouchers [BG]
· All coverage of The Upper Crust on Eater [~EBOS~]

The Upper Crust

4 North Pendleton Street, , VA 20117 (540) 687-5666