Besides Daryl Dollinger, which franchising companies were also named as defendants in the Raving Brands, Inc. lawsuit related to Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
In 2012 the United States Bankruptcy Trustee Daryl Dollinger, our CEO, as well as other defendants, namely FLYING BISCUIT FRANCHISING, INC., MONKEY JOE'S FRANCHISING, LLC, RAVING BRANDS HOLDINGS, INC., MH GROUP HOLDINGS, LLC, DOC GREEN'S GOURMET SALADS, INC., DOC GREEN'S ON PONCE, LLC, MSWG, LLC, MOE'S SW GRILL, LLC, MAMA FU'S NOODLE HOUSE, INC., MAMA FU'S PEACHTREE, LLC, P.J.'S COFFEE & TEA, INC., and BONEHEAD'S PEACHTREE, LLC (the "RBI Affiliates").
Count I was titled "Corporate Waste" and sought relief from certain defendants including Dollinger for their alleged failure to charge RBI Affiliates for using the Raving Brands website.
Count II was titled "Unjust Enrichment" and sought relief from the RBI Affiliates for the value they obtained from use of the Raving Brands website.
Count III was titled "Quantum Meruit" and sought relief from the RBI Affiliates for the value the debtor provided to them by their use of the Raving Brands website.
Count IV was titled "Piercing the Corporate Veil" and sought to make Sprock personally liable as alleged 100% shareholder of debtor RBI for all debts of RBI under an abuse of entity and unity of interest theory.
Source: Item 3 — LITIGATION (FDD pages 9–11)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, in 2012, a lawsuit was filed related to Raving Brands, Inc. Daryl Dollinger, Cinnaholic's CEO, was named as a defendant in this case. In addition to Dollinger, several other entities were named as defendants in the lawsuit. These included Flying Biscuits Franchising, Inc., Monkey Joe's Franchising, LLC, and Raving Brands Holdings, Inc. Other defendants listed were MH Group Holdings, LLC, Doc Green's Gourmet Salads, Inc., Doc Green's on Ponce, LLC, MSWG, LLC, Moe's SW Grill LLC, Mama Fu's Noodle House, Inc., Mama Fu's Peachtree, LLC, P.J.'s Coffee & Tea, Inc., and Bonehead's Peachtree, LLC.
The lawsuit included multiple counts, such as "Corporate Waste," which alleged that certain defendants, including Dollinger, failed to charge RBI Affiliates for using the Raving Brands website. Other counts included "Unjust Enrichment" and "Quantum Meruit," which sought relief from the RBI Affiliates for the value they obtained from using the website. There was also a count titled "Piercing the Corporate Veil," which aimed to make Sprock personally liable as an alleged 100% shareholder of RBI for all debts of RBI.
This information is relevant for prospective Cinnaholic franchisees as it provides insight into the legal background of the company's CEO and the types of legal challenges that affiliated entities have faced. While the lawsuit was settled in 2017, understanding the nature of past litigation can help franchisees assess potential risks and the franchisor's approach to legal matters. Franchisees should consider this information as part of their due diligence process, evaluating how such legal history might impact the stability and reputation of the Cinnaholic brand.