Burger chain allegedly owes more than $600,000 in rent, taxes for multiple locations

Janet Patton
·4 min read
2

The owners of Fayette Plaza have sued BurgerFi and the Lexington franchisees for unpaid rent on the restaurant building near Fayette Mall.

In a lawsuit filed March 9, Fayette Plaza CMBS, a subsidiary of Fayette Mall parent CBL Properties, alleges that the gourmet burger chain stopped paying rent on its Rojay Drive location in November, just after the Commonwealth of Kentucky initiated court action against BurgerFi for more than $125,000 in unpaid taxes.

Coupled with the unpaid rent and taxes allegedly owed on the BurgerFi location in Hamburg, the restaurants allegedly owe at least $605,500 in unpaid rents and taxes. The chain also has previously been evicted from at least one Lexington location.

In mid-February, the Kentucky Finance and Administration Cabinet was awarded a default judgment in Franklin Circuit Court against MPVZ and Me Lexington, doing business as BurgerFi, for $189,580.48 for tax penalties, interest and fees.

The Kentucky Secretary of State lists the member of MPVZ and Me Lexington as Mike Miller. A Michael Lloyd Miller also is listed as a member of MMBB Holding Company LLC, which apparently also operated the BurgerFi at Hamburg.

The BurgerFi on Rojay Drive near Fayette Mall also has closed. This was the first Lexington location, opened in 2016 by franchise group president David Rodriquez. His group also opened a location near the University of Kentucky campus and at Hamburg.
The BurgerFi on Rojay Drive near Fayette Mall also has closed. This was the first Lexington location, opened in 2016 by franchise group president David Rodriquez. His group also opened a location near the University of Kentucky campus and at Hamburg.

When BurgerFi opened in Lexington in 2016, David Rodriquez, the registered agent for MMBB Holding Co. and franchise group president, said his business partners included Mike Miller, former Denver Nuggets basketball player. Eventually they opened three locations.

All Lexington BurgerFi restaurant locations are now closed.

A spokeswoman for BurgerFi Corp., which is publicly traded, said in previous a statement via email: “This is an individual franchisee and not a corporate location and as such, any questions would need to be directed to the lease holder.”

Rodriquez did not return requests for comment. An attorney who has previously represented MVPZ and ME did not immediately respond to a request for comment for this story.

The BurgerFi near Fayette Mall also has closed. It opened in 2016.
The BurgerFi near Fayette Mall also has closed. It opened in 2016.

BurgerFi Fayette Mall location closed: Unpaid Ky taxes, rent

According to the Franklin tax filing, the Rojay Drive restaurant had unpaid sales taxes dating back to Nov. 30, 2020.

The court ordered the restaurant closed in February. Before the restaurant could be sealed, BurgerFi ceased operations, removed equipment and abandoned the premises in January.

The lawsuit filed in Fayette Circuit Court earlier this month alleges that BurgerFi and franchisee Michael Miller left owing $48,985.84 in unpaid rent and utilities plus fees.

The suit alleges that they also are liable for the remainder of the 10-year lease signed in 2015. Altogether, the suit seeks $371,385.85 plus fees.

Sarah Robinson, Fayette Mall general manager, said the company does not comment on ongoing litigation.

BurgerFi Hamburg location: Ordered closed, more unpaid taxes, rent

This is separate from the amount that BurgerFi’s franchisees allegedly owe the Madden Family for unpaid rent on the location at Hamburg. The BurgerFi restaurant at 1816 Alysheba Way has a sign on the door that says it also was ordered closed “by order of the Franklin Circuit Court for nonpayment of taxes owed the Commonwealth of Kentucky.”

A sign on the door of the Hamburg location of BurgerFi says the business was “ordered closed nonpayment of taxes.” It is unclear exactly how much the chain allegedly owes.
A sign on the door of the Hamburg location of BurgerFi says the business was “ordered closed nonpayment of taxes.” It is unclear exactly how much the chain allegedly owes.
A copy of the notice of eviction and the complaint from the landlord was taped to the door of BurgerFi in Hamburg.
A copy of the notice of eviction and the complaint from the landlord was taped to the door of BurgerFi in Hamburg.

It is unclear if those unpaid taxes are in addition to the unpaid state taxes of the Fayette Plaza location.

The now-empty restaurant in Hamburg also has an eviction notice taped to the door, dated March 14. According to the eviction complaint filed in Fayette Circuit Court by the Madden Family, which owns the building, MMBB Holding Co. LLC (which was doing business as BurgerFi of Hamburg) owes more than $22,517 in unpaid Fayette County property taxes for 2022. The restaurant also is alleged to owe more than $22,000 in unpaid rent for January, February and March of 2023.

BurgerFi’s previous Lexington eviction

This isn’t the first time that BurgerFi faced eviction in Lexington.

According to Fayette Circuit Court records, in August 2021 Coliseum Plaza LLC, which is owned by the Greer Companies, filed an eviction complaint BurgerFi for unpaid rent at the location on Rose and Avenue of Champions, across from the University of Kentucky campus. The case was dismissed. But in November eviction notice was issued again and this time the business closed.

Coliseum Plaza sued over unpaid rent and the rent due under the lease, and in July 2022 a settlement was reached.

Martha Stewart, who was on the board of BurgerFi and AppHarvest, stopped by BurgerFi near the University of Kentucky campus for a quick lunch in March 2021 when she was in Kentucky to tour the AppHarvest facility.
Martha Stewart, who was on the board of BurgerFi and AppHarvest, stopped by BurgerFi near the University of Kentucky campus for a quick lunch in March 2021 when she was in Kentucky to tour the AppHarvest facility.

Fayette Plaza also sued BurgerFi and Miller for unpaid rent in September 2021, after the restaurant allegedly failed to pay rent for nine months, owing $95,500. That case was dismissed in September 2022 after payment.

The Madden Family also previously filed eviction proceedings over the BurgerFi in Hamburg in October 2021 and the case was dismissed after payment.