State: Red's Savoy sold unregistered franchises

A business that sold franchise-like licenses without being registered with the state agreed to stop doing so, according to a consent order by the Minnesota Department of Commerce last month.Red's Savoy Franchise LLC agreed in September that certain licensing agreements offered and sold by its affiliate, E & V Schoenheider, Inc., may have been franchises within the meaning of state law, according to a company spokesperson.The company has since become registered to offer and sell franchises and has paid a $3,500 fine imposed by the state, the spokesperson said.There are about 10 Red's Savoy franchises in the metro area, including ones in Coon Rapids, Oak Park Heights and Minneapolis' Uptown area. The original Red's Savoy Pizza, also known as the Savoy Inn, is on E. 7th Street in St. Paul.Affected franchise owners have the right to cancel their contract, the state's consent order stated. They also may choose to continue operating under their existing contract or enter into a franchise agreement.