The operators of three retailers that sell luxury jewelry and watches are claiming the high-end brands they work with have violated their franchise agreements and owe nearly $3.8 million for the construction and design of their corner boutiques in downtown Aspen.
The New York-based brands — Van Cleef & Arpels Inc., Panerai and Roger DuBois — are sold at shops located in the pedestrian malls at the corner of East Hyman Avenue and South Mill Street. They also are among 10 defendants a federal suit accuses of running afoul of franchise agreements that cost the store owners millions of dollars in revenue.
The agreements were breached at the store operations in both Aspen and Naples, Florida, alleges the suit filed by five plaintiffs, which includes Les Bijoux Aspen LLC, the operator of the three Aspen boutiques.
In 2006, Van Cleef & Arpels entered into franchise agreements where Les Bijoux Aspen and its Florida affiliates were to open stores in their respective markets, the suit said.
That included Les Bijoux Aspen spending $3.79 million to build and decorate the store under the direction and control of Van Cleef & Arpels, the suit said. Van Cleef & Arpels “agreed to pay for these expenditures, but failed and refused to do the same,” said the complaint, which was transferred to federal court in Palm Beach, Florida, last week from Florida state court.
The defendant Les Bijoux Aspen and its associated entities also claim they spent $1.2 million on the build-out costs of the Panerai boutique as a flagship store. But Panerai’s corporate office did not acknowledge it as a flagship store while “stealing (the plaintiffs’) customers for their own corporate boutiques” in New York, accused the suit.
By breaching their agreements, the defendants are alleged to owe more than $7 million in build-out costs alone for the stores in Aspen and Florida.
The suit’s two counts are violation of the Florida Franchise Act and breach of implied covenant of good faith and fair dealing.
In a filing last week, attorneys for the defendants said they will need more time to review the complaint before they formally reply to its allegations.
“The complaint includes claims by five plaintiffs against 10 defendants allegedly based on violations of over 300 pages of contracts attached to the complaint,” the filing said. “Additional time is needed so that defendants and their counsel have sufficient time to review and investigate the allegations asserted in the complaint and to gather the necessary information before responding to the complaint.”
Les Bijoux Aspen LLC’s members are Greg Osipov and Simon Dahan of Aspen resident Kenneth Sack. Sack also controls 400 Hyman LLC, which owns the buildings where the Aspen boutique are located.