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A revolt among some franchise owners at Crusty's/Dino's International Inc., a Livonia-based pizza chain that filed for bankruptcy court protection, contributed to the company's financial problems.
John Carpenter, a franchise owner in Grand Blanc for one year, said he stopped paying royalties three months ago. He said that Crusty's/Dino's was not providing advertising and other services either spelled out in the franchisee agreement or promised by company executives.
"I got no support," he said.
A franchise owner who declined to be named said many franchisees stopped paying royalty fees about two months ago. Royalties, amounting to about $10,000 per store annually, account for most of the company's income, according to industry sources. The company, formerly known as Dino's International Inc.,...