Family dispute was the reason for the decline of the fast food chain in Michigan

A popular cheesesteak restaurant in Michigan is closing 18 locations and a dispute between family members is said to be the reason for the final end of the chain.

Lefty’s Famous Cheesesteaks, Hoagies & Grill was a staple in the Detroit-area fast-food business, but a legal dispute between family members forced the chain to close more than half of its locations.

What is behind the family dispute?

According to Mlive, a legal battle brewing between the chain’s founder, Sam Berry, and minority owner Allie Mallad ultimately shrunk the chain’s footprint from 52 locations to 20. There are only 17 Lefty’s locations in the Detroit metropolitan area, one in Ohio and two in Florida.

Sam Berry and his mother Nayfe Berry are accused of forcing Mallad out of business by withholding money he was entitled to and scuttling plans to franchise the company.

In his lawsuit, Mallad, Nayfe Berry’s cousin, demanded unspecified damages for lost profits as well as the right to buy out Berry and his mother’s shares in the company.

Berry then filed a countersuit in federal court seeking a non-compete agreement against Mallad, but that suit has since been dismissed.

Franchise agreement leads to the demise of the chain

In 2020, Berry and Mallad agreed to convert the chain into a franchise and expand the chain beyond its then-11-store footprint.

Within two years, Lefty’s grew from 11 to 52 stores in Michigan, California, Ohio, Florida and Texas. But Berry claims Mallad did not take the initiative to grow the chain.

Mallad, who has built franchises with other companies in the past, is accused of letting the business languish while he focused on other ventures.

On the other hand, Mallad claims that Berry caused irreparable damage to the Lefty brand by posting videos of himself swearing and flaunting cash while wearing the Lefty logo.

Currently, Sam Berry operates the majority of the remaining Lefty’s locations in Michigan.