Dirty Dough, Craveworthy Brands accused of non-payment of franchise, royalty fees
Dirty Dough and Craveworthy are navigating a lawsuit accusing the companies of breach of contract. The lawsuit was filed in late July in DuPage County Circuit Court in Illinois by Indvestia Ventures.
Indvestia entered into a multistate development agreement in 2023 to expand Dirty Dough throughout Illinois, Wisconsin, and Indiana, but claims the cookie chain 'failed to honor its obligation,' including payment of franchise and royalty fees, as well as the failure to maintain franchise registrations in Indiana, which are legally required.
These contractual obligations have remained unfulfilled since Craveworthy acquired a significant stake in Dirty Dough in early 2024 and full ownership in September 2024, Indvestia alleges.
"We believe in holding our partners accountable to the agreements they sign and the entrepreneurs they rely on. It's unfortunate that Craveworthy appears to prioritize brand promotion and celebrity partnerships while disregarding the obligations owed to those helping build its foundation,' Vick Mehta, principal of Indvestia Ventures, said in a statement. "This case is not just about a broken promise — it's about protecting the integrity of the franchising ecosystem and ensuring those who invest in good faith are treated fairly."
In response to the lawsuit, Gregg Majewski, chief executive officer and founder of Craveworthy Brands, said:
'At Craveworthy, our mission is to build and revitalize standout brands, helping them thoughtfully evolve into high-performing concepts with national reach over time. This takes a village.
'When we welcome an emerging brand into our portfolio, it is often with the understanding that there are both opportunities to build on and challenges to address, some of which may predate our involvement. We remain committed to navigating those matters purposefully and staying focused on what matters most: championing the people behind our brands and those who are on this journey with us.
'We take our contractual obligations seriously and are confident in our position. Our franchise partners are the heartbeat of our overarching organization, and we are committed to supporting them with transparency, respect, and true partnership every step of the way.
'While we do not typically comment on pending litigation, we remain committed to addressing this matter through the appropriate channels and staying focused on what we do best — helping entrepreneurs thrive and creating a stronger future for them.'
Dirty Dough was one of the fastest growing restaurant chains in the United States in 2024, with year-over-year sales increasing 62.5% to $53.8 million, according to Technomic data. The cookie chain's unit count jumped 15% to finish with nearly 70 locations.
That said, several Dirty Dough locations have closed in recent months, including in Augusta, Ga., Louisville, Ky., Parker, Colo., Chattanooga, Tenn., Austin, Texas, Laurel, Md., and Logan, Utah, according to local news reports and Yelp.
Contact Alicia Kelso at Alicia.Kelso@informa.com
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