A Denver marketing firm was proud of its branding work in 2015 that tweaked the logo and tagline for a Mediterranean fast casual chain.
But the project left a bad aftertaste, according to a recently filed lawsuit.
Brand Iron Marketing earlier this month sued Denver-based Garbanzo Mediterranean Grill, claiming the restaurant walked out on a bill from 2015 that likely topped $100,000.
After rebranding the company’s 22 stores, logo and website, Brand Iron was set to receive 3 percent of Garbanzo’s net revenue as payment, the lawsuit claims. It also asks the court to prevent the restaurant from using the new logos until it settles the bill.
Garbanzo’s canceled the contract with Brand Iron in early September 2015, according to the lawsuit, after it had a new logo.
But as part of the contract, Garbanzo’s was supposed to report monthly sales to Brand Iron, according to the lawsuit. In August 2015, Garbanzo’s served up $1.3 million in falafel and other fare. Brand Iron sent the restaurant an invoice for $46,000, just over 3 percent of the gross revenue.
Garbanzo’s disputed the invoice and instead paid $20,000, the lawsuit claims. Brand Iron says it’s entitled to three more months of payments, per a requirement that the firm be notified 60 days before the contract can be terminated.
And it wants the court to force the restaurant to share the revenue figures for September, October and November 2015 so it can calculate its fee.
J. Bryan Gwinn from Volant Law is representing Brand Iron. He said Garbanzo is still using the new marketing materials, even though they haven’t been paid for.
“Brand Iron provided a service, and Garbanzo enjoyed the benefits of that service,” he said.
Garbanzo did not respond to a request for comment.
Brand Iron was founded in 2002 by Michael Doyle, the company’s CEO. Doyle did not respond to a request for comment.
In February 2010, Brand Iron sued another client for not paying a contract from 2007. The firm won its case against North American Bank and its holding company Rocky Mountain Organizational Group. The companies were found at fault and paid Brand Iron $11,300. Jeffrey M. Lippa of Greenberg Traurig represented Brand Iron in that case.
The Garbanzo’s dispute is the second marketing-related one to spill into Denver court lately. Also this month, defunct firm Faction was sued by a lender for missing debt payments.