A Dave’s Hot Chicken franchisee filed for bankruptcy on Monday, Franchise Times reported.

The Nashville-style hot chicken franchise is owned by TIG Reaper and three related groups, which are subsidiaries of The Integritty Group (TIG). According to the Times, the group operates seven Dave’s stores in New Jersey, Pennsylvania and Delaware, plus three more in “late stages of development”.

TIG listed between 100 and 199 creditors, to which it owes between $10 million and $50 million. Its largest debts are to Bank Midwest, which filed a lawsuit against the group.

TIG said it received an offer of roughly $30 million to sell the franchise “which would have been more than sufficient to retire” its debts to Bank Midwest, the Times said. TIG’s lawsuit against Bank Midwest alleges that the bank interfered with an active sale process.

“Today, we filed our complaint against the bank, which tells our side of the story, and we look forward to getting to the truth and vindicating ourselves in court,” TIG principal Jiger Patel told Franchise Times.

TIG’s principals provided a $200,000 debtor-in-possession loan to keep operations going during the bankruptcy period.

Dave’s Hot Chicken, the franchisor itself, is not a party to the TIG bankruptcy. A representative of Dave’s Hot Chicken said “the situation does not involve the broader Dave’s Hot Chicken franchise system.”

A Dave’s Hot Chicken opened at 40 Park Avenue in Willow Grove in December 2024.

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