Gigi’s Cupcakes Files For Bankruptcy Amid Ongoing Fight With Franchisees

By Sarah Blaskovich
The Dallas Morning News

WWR Article Summary (tl;dr) 18 franchisees have filed a federal lawsuit against Gina “Gigi” Butler, her business partner Alan Thompson, the parent companies and others. The lawsuit claims the company misrepresented itself financially, threatening franchisees’ ability to be successful.

The Dallas Morning News

A nasty fight may be shaping up between a Fort Worth-based cupcake chain and its franchisees, even as the company’s founder travels to Dallas to promote a new book touting her success.

Gigi’s Cupcakes filed for Chapter 11 bankruptcy protection on Jan. 4 amid a tangle of lawsuits from current and former franchisees who say they were misled about the company’s finances. Gatti’s Pizza, owned by the same parent company, is also part of the bankruptcy filing.

It reads like a cupcake war for Gigi’s. The parent company is not speaking beyond a statement, and former franchisees like Bruce Speidel of Tennessee are alleging “disgusting” business practices.
“You really can’t make any money with the way these companies are set up,” he said.

Gigi’s Cupcakes operates dozens of franchises across the United States. Gigi’s has eight shops in North Texas, including locations in Carrollton, Dallas, Fort Worth, Frisco and Granbury.

The shops are named for Gina “Gigi” Butler, a Nashville entrepreneur who launched her business in 2008 and sold it for $6 million in 2016 to Fort Worth investment firm FundCorp, according to court documents.

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