FDD Items 3 & 4 · 2025 filing
BurgerFi litigation history
What BurgerFi disclosed about lawsuits, arbitrations and bankruptcy in the 2025 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 (litigation) & 4 (bankruptcy) at a glance
What the filing discloses
- Cases disclosed
- 4
- Item 3, as counted in the filing
- Largest settlement, franchisor's own cases
- None stated
- Bankruptcy (Item 4)
- Disclosed
- Franchisor, parent, predecessor or officer
- Filing year
- 2025
- Disclosures cover the prior ten years
Extracted from the 2025 Franchise Disclosure Document
Item 3: litigation
Four disclosed matters: (1) DAJA I, LLC v. BurgerFi International - franchisee fraud/misrepresentation claims over 11-unit development, settled 2020 with franchisee surrendering claims and a restaurant; (2) Burger Guys entities v. BurgerFi International - fraudulent inducement claims, settled April 2025 with affiliate purchasing partial interests for $1,441,317; (3) US v. Happy Asker, Maher Bashi et al. - criminal tax fraud indictment against principals (franchisor not a party), both convicted with prison sentences and restitution; (4) Edmond Mourad et al. v. Happy's Pizza Franchise - franchise fee refund dispute, settled with $335,000 refund.
Item 3 (litigation) · 4 matters disclosed · 1 pending listed
Litigation cases
The franchisor and its predecessor
Pending (1)
Burger Guys of Dania Point, LLC, Oil Can Man, Inc., Burger Guys of Sunny Isles, LLC v BurgerFi International, LLC
pendingBrought by a franchisee · BurgerFi International, LLC (BFI; predecessor) · filed 2021-05-21 · Fifteenth Judicial Circuit, Palm Beach County, Florida · 502021CA006501
“… (Fifteenth Judicial Circuit of Palm Beach County, Florida, Case No. 502021CA006501, filed May 21, 2021).”Page 10 of the 2025 FDD, Item 3
Concluded (1)
DAJA I, LLC v BurgerFi International, LLC; BurgerFi International, LLC v DAJA I, LLC, Donald Simon, Andrew Balog, Anthony Kesselmark and Joseph Kesselmark
settledBrought by a franchisee · BurgerFi International, LLC (BFI; predecessor) · filed 2017-09-07 · Seventeenth Judicial Circuit Court, Broward County, Florida · CACE-17-017155
“… (Seventeenth Judicial Circuit Court of Broward County, Florida, Case No. CACE-17-017155, filed September 7, 2017).”Page 10 of the 2025 FDD, Item 3
Parent, affiliates, master franchisor and subfranchisor
Concluded (1)
Edmond Mourad, et al. v. Happy’s Pizza Franchise, LLC, et al.
settledBrought by a third party · Happy’s Pizza Franchise, LLC (affiliate) · filed 2015-06-16 · Oakland County, Michigan, Circuit Court · 15-147597 CB
“… (Oakland County Michigan Circuit Court, Case No. 15-147597 CB, filed June 16, 2015).”Page 11 of the 2025 FDD, Item 3
Outcome: “the franchisor agreed to refund the $335,000. The case was dismissed without prejudice on Dec. 17, 2015 and, after the settlement payments were finalized, the case was dismissed with prejudice on Mar. 4, 2019.”
Officers and directors (individuals, not the company)
Concluded (1)
United States of America v. Happy Asker, Maher Bashi, et al.
judgmentGovernment or regulatory action · Happy Asker and others (individuals; 'The franchisor was not a party') · filed 2013-07-12 · U.S. District Court, Eastern District of Michigan · 2:13-cr-20518
“… Case: 2:13-cr-20518 (U.S. District Court, Eastern District of Michigan filed July 12, 2013).”Page 11 of the 2025 FDD, Item 3
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
Disclosed in the 2025 Franchise Disclosure Document
Item 4: bankruptcy
Predecessor BurgerFi International and its affiliates filed Chapter 11 petitions on September 11, 2024 (Case No. 24-12017-CTG, D. Del.). System assets were sold via bankruptcy sale process, ultimately acquired by Restaurant Group (an affiliate of current franchisor) on November 27, 2024, with IP sold to BF Company; final liquidation order issued March 12, 2025.
Disclosure signals that moved the score
How this shows up in the verdict
- Multiple active litigation cases including fraud allegations, criminal indictment of officers for tax fraud conspiracy, and negligent misrepresentation claims — pattern of disputes with franchisees
- Criminal indictment against named officers (Happy Asker, Maher Bashi) for conspiracy to defraud U.S. and filing false tax returns — raises questions about corporate integrity and financial reporting accuracy
- Multiple franchisee refund disputes and fraud inducement claims suggest corporate may have misrepresented unit economics or support
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?