The state has ordered fast casual burger chain Burgerim to refund tens of millions of dollars 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 this month 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 Calabasas-based Burgerim Group as an “alter ego” established by the original company to hide assets from franchisees. ...

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