A Minneapolis Firehouse Subs franchisee has filed for Chapter 11 chapter, itemizing greater than $1 million in money owed, in response to paperwork filed April 4.
MR Investments, led by Michael Ruoho, has two Firehouse Subs shops in two Minneapolis suburbs, in addition to Pizza Man eating places. MR Investments beforehand owned a 3rd Firehouse location.
Ruoho’s legal professional, John Lamey of Lamey Regulation Agency, supplied no remark. Firehouse Subs didn’t reply to Franchise Instances’ request for remark.
Ruoho listed liabilities totaling $1.14 million and property totaling $68,376. MR Investments relies in Stillwater, Minnesota.
MR Investments acquired a $499,900 Financial Damage Catastrophe Mortgage from the Small Enterprise Administration in June 2020.
MR Funding’s Woodbury, Minnesota, location has gear property totaling $56,873, however the liquidation value quantities to $28,314. The Plymouth, Minnesota, retailer’s property complete simply shy of $55,000, with liquidation value quantity to $27,483. The shops’ fixtures make up almost all of his property, with $8,000 listed for stock and $4,578 for money and different monetary property.
Ruoho is considered one of a handful of franchisees beneath the Restaurant Manufacturers Worldwide umbrella who’ve filed for Chapter 11 chapter this yr. RBI owns Tim Hortons, Burger King, Popeyes and Firehouse Subs.
Two massive Burger King franchisees, TOMS King and Meridian Eating places Limitless, filed for chapter in January and March, respectively. TOMS, a franchisee with 90 Burger King places, cited a lack of foot visitors for its declining income. Meridian listed elevated prices, in addition to a low gross sales. Meridian has 118 Burger King models.
Premier Cajun Kings, a 19-unit Popeyes franchisee, filed for chapter in March. The corporate’s proprietor, Manraj “Patrick” Sidhu, died abruptly in March 2022, which Premier stated “triggered nice operational instability.”