Fat Brands franchisees pile tens of millions in claims onto bankruptcy as $1B sale tilts to lenders

Operators across Fatburger, Round Table, Great American Cookies and Hurricane Grill allege trademark failures, inflated ingredient costs funneled to debt service, and $8.6M in misused ad funds, as Fat Brands' $1.5B-debt estate heads to a roughly $1B lender-led sale.

— Filed Fri, 15 May, 2026, 07:28 IST · Source Restaurant Business · Updated

Fat Brands' 16-chain franchisee network is filing tens of millions in bankruptcy claims alleging trademark failures, ingredient price hikes funding debt, and misused ad funds, as the $1.5B-debt company is sold for ~$1B mostly to lenders.