Case Status
Pending
FEDERAL TRADE COMMISSION, Plaintiff, v. QARGO COFFEE, INC., a corporation, MARK BASTOROUS, a/k/a Mark Bass and Mamdoh Bastorous, individually and as an officer of Qargo Coffee, Inc., BERNADETTE BASTOROUS, a/k/a Bernadette Shenouda and Bernadette Bass, individually and as an officer of Qargo Coffee, Inc., and SAMIR SHENOUDA, individually and as an officer of Qargo Coffee, Inc., Defendants.
Docket Number
1:24cv23978
Federal Court
Southern District of Florida
Case Summary
The Federal Trade Commission has taken action against coffee shop franchise Qargo Coffee and its founders for failing to disclose critical information required by the Franchise Rule, including one founder’s ties to burger franchise BurgerIM, leaving prospective franchisees in the dark when deciding whether to invest in the franchise.
In its complaint, the FTC alleged that Qargo and founders Mark Bastorous, Bernadette Bastorous, and Samir Shenouda violated the FTC’s Franchise Rule—the agency’s second case in recent years alleging violations of the Franchise Rule.
Under proposed order, the company and its founders are required to pay $30,000, provide franchisees the right to rescind contracts, and void noncompete agreements.