What court handled the S&Q Shack and RBI bankruptcy cases involving a Cinnaholic officer?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 4 BANKRUPTCY
On March 19, 2009, a creditor, BV Retail, LLC ("BVR"), filed an involuntary petition against S&Q Shack for liquidation under Chapter 7 of the U.S. Bankruptcy Code. In re The S&Q Shack, LLC, No. 09-67151 (N.D. Georgia Atlanta Division 2009). Daryl Dollinger, an officer of ours, was an officer of S&Q Shack. BVR claimed that S&Q Shack owed BVR certain money in connection with a lease between S&Q Shack and BVR (the "Lease"). On April 13, 2009, S&Q Shack answered the petition and denied BVR allegations that (i) BVR is eligible to file the involuntary petition and (ii) S&Q Shack is not paying debts to BVR that are not subject to a bona fide dispute as to liability or amount.
Source: Item 4 — BANKRUPTCY (FDD page 11)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the bankruptcy cases for both The S&Q Shack, LLC and Raving Brands International (RBI) were handled in the United States Bankruptcy Court for the Northern District of Georgia, Atlanta Division. Specifically, the S&Q Shack case is referenced as No. 09-67151, and the RBI case is referenced as No. 09-68410. Daryl Dollinger, who is an officer of Cinnaholic, was also an officer of both S&Q Shack and RBI during the time of these bankruptcy filings.
These bankruptcy filings involved involuntary petitions for liquidation under Chapter 7 of the U.S. Bankruptcy Code. BV Retail, LLC filed the involuntary petition against S&Q Shack on March 19, 2009, while a creditor, BVR, filed a similar petition against RBI on April 1, 2009. The filings were based on claims that S&Q Shack and RBI owed BVR certain amounts of money related to a lease and a consent judgment.
For a prospective Cinnaholic franchisee, this information highlights the importance of understanding the background and affiliations of the company's officers. While the cases were settled, the involvement of a Cinnaholic officer in prior bankruptcies could raise questions about financial management and business decisions. It would be prudent for potential franchisees to further investigate the circumstances surrounding these cases and discuss any concerns with Cinnaholic's management team.