Who filed the involuntary petition against RBI, which involved an officer of Cinnaholic?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
On April 1, 2009, a creditor, BVR, also filed an involuntary petition against RBI for liquidation under Chapter 7 of the U.S. Bankruptcy Code. In re Raving Brands, Inc., No. 09-68410 (N.D. Georgia Atlanta Division 2009). Daryl Dollinger, an officer of ours, was an officer of RBI. BVR claimed that RBI owed BVR certain money in connection with the Lease and a Consent Judgment that BVR obtained against RBI. The Consent Judgment entered against RBI related to S&Q Shack's obligations under the Lease which RBI guaranteed and signed a promissory note related to certain amounts due under the Lease. On April 27, 2009, RBI answered the petition and denied BVR allegations that RBI was not paying debts to BVR that are not subject to a bona fide dispute as to liability or amount. RBI also asserted in the answer that the petition should be dismissed because the petition seeks to invoke involuntary bankruptcy against a putative debtor that lacks any assets which could be liquidated in a Chapter 7 case. By order dated August 20, 2010, RBI was placed into involuntary bankruptcy.
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, on April 1, 2009, BVR (BV Retail, LLC) filed an involuntary petition against RBI (Raving Brands, Inc.) for liquidation under Chapter 7 of the U.S. Bankruptcy Code. This case is identified as In re Raving Brands, Inc., No. 09-68410 in the Northern District of Georgia, Atlanta Division. Daryl Dollinger, who was an officer of Cinnaholic, also held a position as an officer of RBI. BVR's claim against RBI was related to money owed in connection with a lease and a Consent Judgment that BVR had obtained against RBI. The Consent Judgment pertained to S&Q Shack's obligations under the lease, which RBI had guaranteed and for which it had signed a promissory note.
RBI responded to the petition on April 27, 2009, denying BVR's allegations that RBI was not paying debts that were undisputed. RBI argued that the petition should be dismissed because RBI lacked assets that could be liquidated in a Chapter 7 case. However, on August 20, 2010, the court ordered RBI into involuntary bankruptcy.
In November 2016, after the bankruptcy court adjudicated the claim amount, the Bankrupt Estate, the trustee, BV Retail, and all defendants successfully mediated the claims to a global resolution. Subsequently, the parties executed a settlement agreement, and in 2017, an order approving the settlement and dismissing the proceeding was issued, leading to the termination of the bankruptcies. This information is disclosed in Item 4 of the Cinnaholic FDD, which covers bankruptcy-related disclosures.