The franchisor behind Mango Mango Dessert has filed a lawsuit against a franchisee claiming that it attempted to close its existing franchised business and open a new one that mirrors its current operations under a different name.
In the lawsuit, Mango Franchise USA, LLC, accuses Z&C Group, LLC, of breach of a franchise agreement. The plaintiff claims that a franchise agreement was executed on March 8, 2021, which granted Z&C Group the right to operate a Mang Mang Dessert Restaurant in Cleveland, Ohio. Mango Franchise USA claims that Z&C Group is bound by specific restrictive covenants that prohibit them from engaging in competitive activities during and after the term of the agreement. These covenants are designed to protect Mango's proprietary system and trademarks associated with their Asian American fusion dessert bars.
According to Mango Franchise USA, Z&C Group has been non-compliant with several aspects of the franchise agreement since December 2024. This includes ignoring menu specifications and operating procedures set forth by Mango. Despite multiple inspection reports highlighting these breaches, Z&C's owner, Bin Bin Zheng, allegedly insisted on running the business independently without adhering to Mango's guidelines. Furthermore, Mango asserts that Zheng plans to close the current franchise location and open a similar business nearby under a different name by June 1st.
In response to these alleged breaches, Mango's legal counsel sent a notice to Z&C Group on February 3, 2025, offering a consensual termination of the agreement upon payment for damages caused by these violations. However, Z&C's counsel countered with claims that Mango had made misrepresentations at the time of signing the franchise agreement—claims which Mango denies as fabricated post-facto defenses against termination.
Mango Franchise USA is seeking a declaratory judgment affirming the enforceability of their franchise agreement and contends that any attempt by Z&C Group to nullify or rescind it lacks merit under both federal trade regulations and Ohio state law. They request permanent injunctive relief preventing Z&C from opening any competing businesses within restricted territories defined in their contract. Additionally, they seek compliance with all confidentiality provisions outlined therein, along with attorney fees incurred due to this litigation.
The plaintiff is represented by attorney Daniel I. Goldberg of Offit Kurman P.A. The case was filed under Case ID: 25-CV-1941-JRC.