Until late last year, Elkhart area residents could get their cheese fix at an I Heart Mac & Cheese location on North Nappannee Street.
However that location has now closed, along with every other branch across the state the fast casual chain faces new allegations of violating Indiana business code.
Indiana’s Secretary of State Diego Morales this week announced the office is filing a complaint against I Heart Mac & Cheese’s parent company MACFO for not providing enough information to potential franchise owners.
The state claims MACFO misrepresented the expected profits of opening a franchise, as well as the experience of company executives in financial disclosure documents, which are required for franchises under state and federal law. The complaint also says the company threatened struggling branches with lawsuits.
"To sell more locations throughout Indiana, MACFO also misrepresented the profitability of the franchise and demand for locations," the complaint alleges.
In an email to WVPE, MACFO's vice president and general counsel Kevin Ayers said "The allegations involve technical reporting violations. MACFO denies any intentional wrongdoing and intends to vigorously defend its rights."
The company sells pre-made frozen mac & cheese and grilled cheese sandwiches.
The new complaint comes after Indiana officials revoked MACFO’s license in May of last year, preventing new locations from opening in the state. The secretary of state's office says MACFO entered into contracts for franchises with 16 people in Indiana. As of Wednesday, I heart Mac & Cheese's website showed no locations in Indiana.
Other outlets, including Restaurant Business Online, have reported on the Florida-based MACFO's issues with regulators in other states.
