This Collapsing Burger Chain Is Now Being Sued By the Government

Burgerim's collapse has taken another turn. The U.S. Attorney General sued Burgerim and its creator Oren Loni in California federal court on Monday 

Burgerim is sued for misrepresenting its commercial viability to franchisees. It claims the chain defrauded and oversold veterans and

primarily inexperienced investors and then refused to return thousands of franchise fees worth $57 million.

Burgerim has dealt with the government before. Last February, California ordered the corporation to pay 

$4 million in fines for violating state and federal franchising laws and return its operators' millions in franchise fees.

Burgerim, founded in California in the late 2010s, sells slider-style burgers at its West Coast eateries. It became "the fastest-growing

emerging chain" in the U.S. in 2018 with 200 outlets and 1,200 franchisees between 2016 and 2019.

Burgerim's franchisees were encouraged by its growth until 2019, when founder Oren Loni went to Israel and the company considered bankruptcy.

Restaurant Business reported that Burgerim's early years were more like "a pyramid scheme" than a quick-service chain, with novice franchisees paying $50,000 

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