Dickey’s Faces Legal Issues as California Alleges Violations and Arbitrator Awards $700K
A former Dickey's franchisee in Illinois is set to receive a $700,000 award after a federal judge upheld an arbitration ruling against the company. The decision followed claims that Dickey’s violated the Illinois Franchise Disclosure Act by misrepresenting its business model and misleading prospective franchisees. Separately, California's Department of Financial Protection and Innovation (DFPI) accused Dickey’s Barbecue Restaurants Inc. of violating state law by underreporting the number of closed locations to potential investors. The DFPI found that between November 2023 and March 2026, Dickey’s misrepresented closure numbers—claiming only 20 franchisees ceased operations when in fact it was closer to 36 due to clerical errors. The state ordered the company to stop its unlawful practices and pay $36,800 in penalties. If non-compliant, California could revoke Dickey’s franchise registration.
Topics: Franchising Legal Dispute Regulation