What court handled the In Re: Raving Brands, Inc. litigation involving Cinnaholic affiliates?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
In Re: Raving Brands, Inc., Debtor through Paul H. Anderson, Jr., as Chapter 7 Trustee vs. H. Martin Sprock, III, Daryl Dollinger, Stephen LaMastra, Flying Biscuits 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, United States Bankruptcy Court for the Northern District of Georgia, Atlanta Division, Adversary Proceeding No. 12- 05417. Filed August 16, 2012.
Source: Item 3 — LITIGATION (FDD pages 9–11)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the litigation "In Re: Raving Brands, Inc." was handled by the United States Bankruptcy Court for the Northern District of Georgia, Atlanta Division. The case is identified as Adversary Proceeding No. 12- 05417 and was filed on August 16, 2012.
This litigation involved Cinnaholic affiliates, officers, and directors, along with other defendants. The case included claims of fraudulent transfers, constructively fraudulent transfers, and wrongful distributions related to the sale of The S&Q Shack, LLC. The lawsuit also alleged that S&Q forgave debts owed by some affiliates.
The case was stayed pending the resolution of underlying bankruptcy cases and was eventually settled through mediation in November 2016, with a settlement agreement executed in 2017. The settlement involved payments of $310,000 by Mr. Sprock and $90,000 by Mr. Seydel, which were approved by the Bankruptcy Court, and mutual general releases were entered into among all parties.