Man accused of illegally opening franchise

A Cypress man is being sued by a business that is alleging he sold a store location to the defendants, who defaulted on payments owed. 

The defendants are also accused of establishing a third location using the same logo without permission.

 

La Reyna Tortilleria #2. Inc., and Lucio Castro filed a lawsuit on Oct. 22 in the Harris County District Court against Homero S. Puga, Julio Puga and Puga-Sanches Group, LLC, asking for a restraining order against the defendant.

 

The plaintiffs say that on Aug. 5, 2005, they formed La Reyna Tortilleria. On May 4, 2006, a second franchise was formed with the consent of Castro and his partner, Irma Valdez. The Pugas agreed to buy this franchise in February 2008 for $250,000, with monthly payments to begin in May of 2008.

 

On March 21, 2008, a third store with the name La Reyna Tortilleria #3 opened.

 

In June 2009, Homero Puga opened a store under the name La Reyna Tortilleria & Rosticerias and used a logo similar to the La Reyna Tortilleria one. The plaintiffs say he had no permission to do so. They also learned that the defendants did not pay payroll and income taxes and failed to pay on equipment that was part of the deal.

 

The plaintiffs are seeking damages including $250,000 in actual damages, a restraining order keeping the defendants from selling their store, court costs and any other damages it is entitled to by the court.

 

The plaintiffs are being represented in the case by Houston attorney Arturo R. Eureste.

 

Harris County District Court Case No. 2010-70389

 

This is a report on a civil lawsuit filed at the Harris County Courthouse. The details in this report come from an original complaint filed by a plaintiff. Please note, a complaint represents an accusation by a private individual, not the government. It is not an indication of guilt, and it only represents one side of the story