Palm Seashore County, FL  (RestaurantNews.com)  A coalition of franchisees working 19 of the 38 remaining Hurricane Grill & Wings eating places has filed a significant authorized criticism in opposition to franchisor Hurricane AMT, LLC. The lawsuit, filed within the fifteenth Judicial Circuit in and for Palm Seashore County, alleges widespread mismanagement, misleading practices, and monetary misconduct in violation of a earlier settlement settlement. Franchisees report that this conduct has jeopardized the model’s future.

Key Allegations from Franchisees

1. Misappropriation of Advertising Funds: Franchisees declare that Hurricane AMT collected necessary advertising contributions totaling 3% of weekly product sales however failed to make use of these funds for his or her supposed functions. As an alternative, funds had been allegedly diverted for unrelated bills and private enrichment of executives.
2. Breach of Settlement Settlement: The franchisor is accused of failing to offer essential advertising companies, leading to a pointy decline within the model’s presence and income. The variety of working shops fell from 58 to 38, severely impacting franchisee profitability. These points had been raised by franchisees in a previous dispute that resulted in a settlement settlement whereby the franchisor reaffirmed its obligations to Franchisees assert that the franchisor breached the Settlement Settlement.
3. SEC Findings and Govt Misconduct: The SEC has charged Andrew Wiederhorn, former CEO of FAT Manufacturers, and different senior executives with misappropriating over $27 million, together with franchisees’ advertising contributions. These funds had been allegedly spent on luxurious bills resembling non-public jets, first-class journey, and jewellery.
4. Negligent Supervision and Misrepresentation: The criticism highlights negligent supervision by Hurricane AMT, which allowed key executives, together with Thayer Wiederhorn, to cowl up monetary misconduct. Franchisees allege they had been misled concerning the monetary administration and operational assist offered by the franchisor.
5. Violation of Florida Misleading and Unfair Commerce Practices Act (FDUTPA): The franchisees accuse Hurricane AMT of misleading enterprise practices that embrace the unauthorized use of selling funds and false representations concerning the monetary well being and assist accessible to

Plaintiffs Search Complete Aid

The plaintiffs are demanding:

• A full and clear accounting of all advertising fund contributions and
• Reimbursement of misappropriated funds and royalty
• Compensation for monetary losses incurred because of the franchisor’s alleged
• Protection of authorized charges and courtroom prices related to the

Assertion from Franchisee Coalition

“This lawsuit is about accountability. We imagine that Hurricane AMT has failed of their obligations, and we’re searching for justice for the injury triggered to our companies,” stated a spokesperson for the franchisee group.

About Hurricane Grill & Wings

Hurricane Grill & Wings is understood for its laid-back tropical vibe and signature wings with daring flavors. The model was acquired by Hurricane AMT, LLC, and later turned a part of FAT Manufacturers Inc.’s portfolio. Latest allegations have raised severe issues concerning the administration and way forward for the franchise community.

Contacts:

Alan Burger
McDonald Hopkins
561-472-2963
aburger@mcdonaldhopkins.com

Alaina Karsten
McDonald Hopkins
561-847-2354
akarsten@mcdonaldhopkins.com