Kewal Ahuja’s SGF Faces Legal Challenges Amid Allegations of Fraud
Kewal Ahuja, the founder of Spice Grill Flame (SGF), is currently embroiled in legal disputes as franchise owners and investors accuse the company of fraud, misrepresentation, and financial mismanagement. Once a prominent player in the restaurant industry, with over 45 outlets, SGF’s network has drastically dwindled to just 15 locations, plagued by complaints regarding poor service, unfulfilled promises, and mounting financial instability.
SGF faces fraud claims from investors. |
SGF operates two franchise models: FOFO (Franchise-Owned, Franchise-Operated) and FOCO (Franchise-Owned, Company-Operated). Investors who opted for the FOCO model were promised a fixed monthly return of Rs. 37,500, with SGF handling the operations. However, the reality turned out to be much different. In one such instance, an outlet in Sector 31, Gurgaon, was abruptly shut down after just a year, without prior notice to the investor. As a result, the promised monthly payments ceased, leaving the investor at a significant financial loss.
In an apparent attempt to conceal the company’s declining operations, SGF, under Ahuja’s leadership, rebranded its website, removing any mention of the number of active outlets. However, internet archives reveal that around 70% of SGF’s outlets have shut down, exposing the severity of the company’s troubles and the dissatisfaction of its investors who feel misled and defrauded.
The mounting legal pressure from franchisees and investors underscores the deteriorating trust in SGF’s business practices. As the company faces increasing scrutiny, questions continue to surround its management and the future of its remaining outlets.
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