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FTC Files Lawsuit Against Burgerim Restaurant Franchise for Violations of the Federal Trade Commission Act

On Monday, the United States filed a complaint in the Central District of California against Burgerim Group USA, Inc., Burgerim Group, Inc. and Oren Loni ....

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State Orders Burgerim to Refund Franchisees | San Fernando Valley Business Journal

The state has ordered fast casual burger chain Burgerim to refund $57 million in franchise fees paid by more than 1,500 would-be restaurant operators after finding the Encino company violated California’s franchise regulations.
According to a complaint filed last week by the state’s Department of Financial Protection and Innovation, Burgerim; its founder, Oren Loni, and a third entity called Burgerim Group Inc. were ordered to return all “ill-gotten funds” to current and former franchisees who have not been made whole. The complaint characterizes Burgerim Group as an “alter ego” established by the original company to hide assets from franchisees.
The financial department’s complaint was first reported by Restaurant Business Online. ....

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California fines Burgerim $4M, orders it to refund franchise fees

Dive Brief:
Last week, California ordered Burgerim to pay almost $4 million in fines to refund franchisee fees because the burger chain violated several of the state s franchise regulations, according to an order from California s Department of Financial Protection and Innovation. It was reported first by Restaurant Business. The company sold franchises to 1,550 operators who paid $57.7 million in fees from 2015 to July 2019.
The order states that Burgerim created a successor company, called the Burgerim Group, to commit fraud against and shield assets from franchisees. Burgerim Group received almost $400,000 in rebates from third-party vendors between August 2019 and August 2020. California has also ordered Burgerim to refund the franchisee fees within 30 days of an operator s request and to offer to rescind franchise agreements. ....

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