Rami Levy Sues Super Cofix Franchisees for Millions
Rami Levy Marketing and Investment has filed a NIS 2.3 million lawsuit against two Super Cofix franchisees, alleging they misappropriated hundreds of thousands of shekels in cash from store registers.
The franchisees operated Super Cofix branches in Tel Aviv, Ra'anana, and Givat Shmuel. Under their franchise agreements, they were responsible for sales and depositing daily proceeds into a secure Brink's safe, in exchange for a commission. Super Cofix was merged into Rami Levy Marketing and Investment in May.
According to the lawsuit, minor discrepancies between register totals and deposited amounts were initially corrected. However, between April and June 2024, the franchisees allegedly stopped depositing daily cash, disabled or covered security cameras, and failed to transfer any funds to the safes. Initially, NIS 194,000 was unaccounted for, with the franchisees claiming they used the money to pay VAT debts. Super Cofix CEO Pini Shtrit reportedly informed them this was a fundamental breach of contract and demanded they vacate the premises.
The company claims the franchisees continued to take money and refused to allow Shtrit to conduct inventory checks, by which point the un-deposited amount had risen to NIS 290,000. Rami Levy Marketing and Investment has since filed a police complaint.
However, the franchisees' attorney, Shosh River, claims Super Cofix approached two men in their 60s to become franchisees, initially for one store and later forcing them to take on additional, unprofitable locations. She alleges the company delayed franchise fee payments, and that the franchisees used cash from registers to pay salaries due to financial pressure, with Super Cofix's knowledge. River states the franchisees were later asked to manage a cafe, refused, and then were abruptly told to vacate the stores. She asserts the company was already in financial distress and that the franchisees, both pensioners, are now destitute and struggling to afford legal defense against the lawsuit.
