What event led to the termination of the S&Q Shack and RBI bankruptcies, which involved an officer of Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
After the amount of the claim was adjudicated by the bankruptcy court, the Bankrupt Estate, the trustee, BV Retail and all of the defendants successfully mediated the claims to a global resolution in November 2016. The parties subsequently executed a settlement agreement and an order approving settlement and dismissing this proceeding followed in 2017. This led to the termination of the bankruptcies in question.
Source: Item 4 — BANKRUPTCY (FDD page 11)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the bankruptcies of S&Q Shack and RBI, which involved Daryl Dollinger, an officer of Cinnaholic, were terminated following a mediated global resolution.
Specifically, after the bankruptcy court adjudicated the amount of the claim, the Bankrupt Estate, the trustee, BV Retail, and all defendants successfully mediated the claims, reaching a global resolution in November 2016. Subsequently, the parties executed a settlement agreement, and in 2017, an order was issued approving the settlement and dismissing the bankruptcy proceedings.
This resolution involved payments of $310,000 by Mr. Sprock and $90,000 by Mr. Seydel, which were approved by the Bankruptcy Court. Mutual general releases were then entered into among all parties, leading to the termination of the bankruptcies of S&Q Shack and RBI.