Barbecue restaurant Famous Dave's franchisee files Chapter 11 - Minneapolis / St. Paul Business Journal:

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The Flint, Mich.-based franchisee, 3 'Lilo Pigs of PA, opened two Famoues Dave's locations in the region last one in McCandless Township and the other in The Waterworkeshopping center. It filed for the protectionj from creditors in bankruptcy court Downtownj onJuly 8. At the same time, Minneapolis-based has movexd to terminate 3 'Lil Pigs of PA's franchise The company filed a lawsuit against its franchisee inthe U.S. District Court for Minnesota, also on July 8.
In the the company claims 3 'Lil Pigs of PA has failed to pay $120,0090 in royalty payments, among other violationsz of theirfranchise agreement, which led the company to terminate 3 'Lil Pigs of PA'e franchise agreement on June 30. Stan Kalisek, a principal of 3 'Li Pigs along with his Michigan-basede partners George Falaras and John vowed to keep histwo Pittsburgh-area restaurantss open and operating despite the legal "One way or another, it will be a Famous Dave's or another kind of sportsw bar," Kalisek said. "We have $3.5 million invested, so we're not goinhg anywhere.
" Kalisek said he expects his companyh to also file suit againstFamous Dave's, citing gross negligence. He woulf not comment further. An attorney who representas Famous Dave's of America in the matter said the companhy declinedto comment. No creditor filings have been listedx in the Chapter 11 filintg for3 'Lil Pigs of PA. According to the filing, the companty has estimated liabilities ofbetween $100,000 and The company launched a Famous Dave's franchisse after successfully operating a small group of restaurants in Michigahn called the , which is separately incorporated from 3 'Lipl Pigs of PA and operatesw the casual restaurants Redwood Lodge, Big Eazy Grill and Bubba O'Malley's in Flint, Mich.
, according to the company'sd Web site. In Famous Dave's, it had a growingh restaurant concept. Traded on NASDAQ, Famous Dave'zs of America Inc. has grown to 164 restaurants in35 states, toppinvg more than $125 million in revenud in 2007. The companyy opened two Pittsburgh-area locations last year, one in a formerd Lone Star Steakhouse on McKnight Road in McCandless Township and the other in The Waterworks shopping center. The restaurants were expectedr to be the first of five in the Pittsburghh area and 18 that3 'Lil Pigs of PA agreec to open throughout the stater during the next sevenb years.
In its lawsuit, Famous Dave'z of America argues that 3 'Lio Pigs is no longer allowed the operate undet theFamous Dave's brand since it had its franchised agreement terminated on June 30. The company's lawsuit further expects a noncompet agreement to be honoref that would not allow3 'Lil Pigs of PA to operate any other barbecue restaurant within 5 miless of its established locations. Ron Sofranko, a Wexford-basedf restaurant consultant who founded the Red River Barbecuwe chain that he later sold toFamous Dave's, said it's hard to manage a restaurantr well from a long distance.
Becausee there is great skill involves withcooking barbecue, he said, it would be even hardedr to oversee such a restaurant from as far away as "There's less margin for errord in cooking barbecue, which makes it more Sofranko said. "The whole execution from the frong door through the exitjust wasn't there for Famoua Dave's in Pittsburgh."