, Burgerim raced to sign up inexperienced franchise operators, selling as many as 1,200 franchise licenses to operators in 40 states over just four years. 200 Burgerim locations are currently open, though the “vast majority” are not profitable, according to Restaurant Business. One hundred have already closed, and many more may never open.
As Feinstein writes in her letter, “a number of franchisees report that they were the victim of false or misleading sales tactics, including offers by Burgerim to refund franchise fees, on which Burgerim has failed to follow through.” While promising fast profits and offering money-back guarantees, Burgerim instead delivered high upstart costs and a confusing menu that reportedly led to food waste and lost revenue.
And, bizarrely, franchisees tell Restaurant Business that Burgerim never even collected royalties from them. Instead, it was mostly interested in selling new licenses. “Either by design or by accident, Burgerim operated much like a pyramid scheme,” Restaurant Business concluded. Feinstein’s letter to the FTC arrives six weeks after Restaurant Business’ explosive investigation. Burgerim’s CEO, Oren Loni, fled the country in November, which is usually a bad sign for business, and Burgerim appointed a chief restructuring officer who has flirted with filing for bankruptcy. That could be a disaster for existing locations, Feinstein observes. “Many of the locations that have opened are struggling, and all would face severe consequences if Burgerim files for bankruptcy.
Burgerim also faces 90 lawsuits, including one filed by Jonathan Cheban, an influencer and Kardashian hanger-on known as Foodgod,
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: YahooNews - 🏆 380. / 59 Read more »
Source: MSNBC - 🏆 469. / 51 Read more »
Source: MarketWatch - 🏆 3. / 97 Read more »
Sen. Blumenthal: What Trump did was 'classic bribery'Senator (D-CT) joins to Hallie Jackson to explain why he will vote to convict and remove the President on Wednesday, adding that he won't 'rule out' a censure motion if the President's behavior continues. not true the aid got to Ukraine on time. No investigation on Biden was started by Ukraine, Democrats know they lost the impeach due to lies. No pressure or aid was stopped. Democrats voted against sending aid last year. And when Obama was president Hey hey hey Flat Earthers... Just checked in to giggle at the unhinged MSNBC conspiracy theorists. Maddow making Alex Jones look normal. Good luck gang, you're gonna need it. Bless your silly hearts. TheEarthIsRound Russiagaters
Source: MSNBC - 🏆 469. / 51 Read more »
Source: latimes - 🏆 11. / 82 Read more »
Source: politico - 🏆 381. / 59 Read more »