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FLORIDA RECORD

Thursday, November 7, 2024

Everfresh Endeavors accuses Edible Innovations of fraudulent misrepresentation

State Court
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In a heated legal battle, a Florida-based company is suing another for alleged fraudulent misrepresentation in a business deal gone awry. EverFresh Endeavors, LLC filed the complaint against Edible Innovations, LLC (EI) in the Circuit Court of the Fifteenth Judicial Circuit in Palm Beach County, Florida on July 1, 2024.

EverFresh Endeavors has accused Edible Innovations of fraudulently inducing them into a settlement agreement by misrepresenting key facts about their business operations. The lawsuit claims that Edible Innovations falsely stated they had an agreement to expand Lime Fresh Mexican Grill locations and concealed the closure of their only operating location at Florida Atlantic University (FAU).

The roots of this conflict trace back to September 6, 2017, when EverFresh and EI entered into a Master License Agreement (MLA). This agreement allowed Edible to use EverFresh's trademarks and system for developing Lime Fresh Restaurants at specific locations. However, issues began surfacing when Edible allegedly failed to maintain brand standards and did not inform EverFresh about sublicensing agreements as required by the MLA.

Tensions escalated in 2019 when EI opened a Lime Fresh food truck at FAU without notifying EverFresh. Despite multiple notices from EverFresh demanding compliance with brand standards and documentation of sublicenses, EI reportedly failed to address these issues adequately. By mid-2022, other Lime Fresh locations managed by Edible had closed down, leaving only the FAU food truck operational.

On July 11, 2022, EverFresh issued a Notice of Default to Edible Innovations under the MLA due to continued non-compliance. When Edible ignored this notice, EverFresh terminated the MLA on November 4, 2022. Subsequently, EI then sued EverFresh for breach of contract among other claims. The parties agreed to mediation in April 2023 and reached a settlement where EverFresh would pay $750,000 over two years while taking back control of their brand at FAU.

However, it was later revealed that the FAU food truck had closed permanently on April 29, 2023—information that was allegedly withheld from EverFresh during settlement negotiations. This concealment forms the crux of EverFresh's current lawsuit against EI for fraud in inducement. They argue that had they known about the closure and lack of expansion plans with Compass Group USA Inc., they would not have agreed to such terms.

EverFresh is seeking damages amounting to $275,000 along with rescission of the previous settlement agreement. They also demand costs and attorneys' fees as well as any other relief deemed appropriate by the court.

Representing EverFresh is attorney Irene Oria from Pierson Ferdinand LLP. The case number is: 502024CA006202XXXAMB Div: AK.

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