The state has ordered fast casual burger chain Burgerim to refund $57 million in franchise fees paid by more than 1,500 would-be restaurant operators after finding the Encino company violated California’s franchise regulations.

According to a complaint filed last week by the state’s Department of Financial Protection and Innovation, Burgerim; its founder, Oren Loni, and a third entity called Burgerim Group Inc. were ordered to return all “ill-gotten funds” to current and former franchisees who have not been made whole. The complaint characterizes Burgerim Group as an “alter ego” established by the original company to hide assets from franchisees.

The financial department’s complaint was first reported by Restaurant Business Online.


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