When the Franchisor Can’t Keep Their Own Doors Open

It’s one of the biggest red flags in franchising that too few people talk about: franchisors who sell franchises while failing to keep their own corporate locations running or not developing any corporate locations at all.

Let’s look at I Heart Mac & Cheese as a perfect example.

In 2017, they launched franchising with a single open location purchased by Mac and Cheese FLL, LLC from Chef Michael Blum and I Heart Mac and Cheese, LLC in June 2016. Rapid expansion followed. Corporate locations quickly opened in Parkland, Pembroke Pines, and Coral Springs, Florida. By the end of 2018, they had two more corporate stores open in Boca Raton and Jupiter, Florida. More openings came in 2019 in Athens, Georgia; Patchogue, New York; and Tallahassee, Florida.

Then the closures began.

In February 2018, tragedy struck Parkland with the horrific shooting at Stoneman Douglas High School. Corporate later claimed this event drove the closure of the Parkland location in 2019. That may have been part of the story, but the truth is the Parkland store was underperforming from day one. Tucked into an upscale shopping center, hidden from the main road, it struggled despite being next to an ice cream shop and across the parking lot from a busy grocery store. Rent was sky-high, labor costs were steep, and sales were low.

If we think critically: how many other businesses in Parkland were forced to close permanently a full year after the shooting because of lingering effects? Not many, I’d wager. The reality is, the store simply wasn’t financially viable. Just like 83% of all I Heart Mac and Cheese locations nationwide.

And it wasn’t just Parkland. Other corporate stores faced the same fate: low revenue, crushing expenses, and eventual closure. Every single one of those early corporate locations except Coral Springs has been permanently closed; whether shut down by corporate or shuttered after an unwitting franchisee took them over.

Over the years, corporate tried to rescue failed franchise locations, taking back stores in College Station, Texas; Tallahassee, Florida; Athens, Georgia; Patchogue, New York; Hixson, Tennessee; Mont Belvieu, Texas, and Westfield, Indiana, among others. But they rarely got these stores up and running again. They formed multiple location-specific LLCs under Delia Valles and Stephen Giordanella, signaling plans to take over more franchise locations than they ever did. Many of these LLCs never operated a single day.

Consider College Station, Texas. Corporate assumed the lease from a failed franchisee but defaulted almost immediately, even after reselling the location to a franchisee who operated an I Heart Mac & Cheese in Nevada. That Nevada franchisee had no connection to Texas, alienated local staff with immediate wage cuts, and soon closed the College Station location. His own Las Vegas store also ultimately closed.

Today, the only corporate location that remains open is in Coral Springs, Florida; and even that is a story in itself. Initially corporate-owned, the Coral Springs store was “sold” in 2019 to Vicki Whittaker Amodio, wife of VP of Franchise Development Joseph Amodio. Less than a year later, it was “sold” again to Carlos Rodriquez, then fiancé of Delia Valles. Carlos held the location the longest, but eventually corporate reacquired it and sold it to I Heart Ventures, LLC, with principals Robert Sukhman, Mark McLeod, and Daniel and Kendal Rich, for $300,000. That transaction is documented in the Rich vs. I Heart Ventures, LLC et al lawsuit covered previously.

As of today, it’s unclear whether corporate still owns the Coral Springs store or if it’s under the ownership of I Heart Ventures, LLC. The ownership remains murky.

And this is exactly why the Franchise Rule calls for transparency.

Prospective franchisees should not have to play detective, tracing who owns a franchise that’s actively being marketed for sale.

Because here’s the critical question:

What does it say about a franchisor who cannot keep their own locations open?

How can they expect franchisees to succeed following their systems and processes when those same systems and processes didn’t work for the franchisor’s own stores? It’s ludicrous to expect franchisees to achieve profitability in a model the franchisor themselves failed to run successfully. And when the franchisee ultimately fails, as with over 83% of I Heart Mac and Cheese locations, they are often threatened with Breach of Contract, liquidated damages, slander, defamation, and tortious interference claims.

Reality Check

When you’re evaluating any franchise, ask this first:

✅ Does the franchisor operate profitable corporate locations…and have they kept them open long-term?

If the answer is no, or if ownership records are “murky,” that’s a major red flag. You deserve to know the truth about the business you’re buying into. Because if the franchisor can’t make money running the concept, why would you?

The content provided in this blog post is for informational and educational purposes only and does not constitute legal advice. Franchise Reality Check™ makes every effort to ensure the accuracy of the information presented but does not guarantee its completeness or applicability to individual circumstances. Readers are strongly encouraged to consult with a qualified franchise attorney or regulatory professional before making any investment or legal decisions related to franchising. Any references to legal documents, individuals, or companies are based on publicly available information and are presented solely for the purpose of transparency and public awareness.