The saga of the collapsing burger chain BurgerIM has taken yet another turn...
BurgerIM and its founder Oren Loni in federal court in California, citing breaches of the Federal Trade Commission Act.of misleading franchisees about the viability of its business. It claims the chain was defrauding and overselling to veterans and mostly inexperienced investors and then backed out of its promise to refund thousands of franchise fees worth $57 million in total.This isn't BurgerIM's first run-in with the government.
In February of last year, the company was ordered by the state of California to pay about $4 million in fines for violating state and federal franchising laws—and to refund its operators the millions owed in franchise fees.For those unfamiliar with BurgerIM's story: The chain is a California-based business that got its start in the late 2010s, selling slider-style burgers at its restaurants across the West Coast.