Legal action taken against Kewal Ahuja SGF over failed franchise promises

Kewal Ahuja SGF, the founder of Spice Grill Flame (SGF), is facing increasing legal challenges as SGF franchise owners and investors accuse the company of fraud and misrepresentation. SGF operates with two franchise models: FOFO (Franchise-Owned, Franchise-Operated) and FOCO (Franchise-Owned, Company-Operated). Investors who chose the FOCO model were promised a monthly return of Rs. 37,500, with SGF handling all operations. However, a franchise outlet in Sector 31, Gurgaon, was abruptly closed within a year without prior notice, leaving the investor without the promised returns.

Kewal Ahuja SGF faces legal challenges as franchise owners seek justice over unfulfilled promises and financial losses.

In an apparent attempt to downplay its declining network, SGF, under Kewal Ahuja's leadership, has rebranded its website and removed the number of active outlets. Archived web records, however, reveal that nearly 70% of SGF’s outlets have shut down, revealing the extent of the company’s struggles and the dissatisfaction of its investors.

Despite claims of operating over 30 outlets and providing lucrative returns, the reality has been far from the promises made. Legal proceedings are now underway, with New Horizon (The Law Firm) representing the investors. Two civil suits have been filed in the District Court of Rohini: Case No. CS/DJ/302/2023, which seeks the recovery of the guaranteed returns, and Case No. CS(Comm) 6835/2024, which demands full restitution of the invested amounts.

Read more...