I Heart Mac & Cheese is a fast-casual restaurant chain that has signed up 100 franchisees across the United States, but many of these locations have not opened or have closed. Some franchisees have struggled to secure financing, and at least two operators have filed for personal bankruptcy and have filed a lawsuit against the company. I Heart Mac & Cheese has also sued one of its franchisees after she spoke out against the company to other operators. Former operators have reported that the company has given rosy projections of sales and profitability and understated buildout costs.
The CEO of I Heart Mac and Cheese, Stephen Giordanella, has denied these allegations or declined to comment on specific concerns, citing ongoing litigation. He has said that the company’s system is easy to operate, but that some franchisees have failed due to their inability to operate the business effectively.
“It’s a mentality,” said Adam Wasch, an attorney with the Florida law firm Wasch Raines who represents one of the I Heart franchisees suing the brand. “They sell to anyone that has enough to pay the franchise fee and see where the chips fall.”
Both quotes are from this article by Restaurant Business Online.