Franchise News
Indiana Blocks I Heart Mac & Cheese From Selling New Franchises
The state ordered refunds and penalties after concluding the company left key information out of its franchise disclosure documents.
Indiana regulators have permanently barred I Heart Mac & Cheese from selling franchises in the state after determining that the company violated franchise disclosure laws and misled prospective franchisees, according to Franchise Times.
Indiana's action followed a complaint against Mac and Cheese Franchise Operations (MACFO), the parent company of I Heart Mac & Cheese. State regulators found the company failed to disclose certain lawsuits and aspects of executives’ employment history in its Franchise Disclosure Document, information they said prospective franchisees should have received before investing.
MACFO had been under a cease-and-desist order in Indiana since 2023, when regulators halted its franchise sales in the state. In April 2026, officials followed with a permanent ban.
According to court documents, the company sold 16 franchises to at least seven Indiana operators. Regulators found that none of those locations successfully operated long-term, with several never opening at all.
The state also determined that franchisees were provided unrealistic expectations regarding startup costs, staffing needs and labor expenses. Investigators found that projected investment costs listed in earlier FDDs were significantly below actual expenses required to open and operate a restaurant.
As part of the ruling, MACFO was ordered to return $297,500 in franchise fees to three Indiana franchisees whose agreements were terminated. The company and several executives were also assessed $80,000 in civil penalties.
The decision adds to growing scrutiny surrounding the brand, which once claimed approximately 80 locations but has since contracted to just six operating restaurants nationwide.
For emerging franchise brands, the case shows how quickly disclosure issues can become a larger regulatory problem.
Read the full article here.
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