"In 2025, franchisees filed a lawsuit accusing Roll-Em-Up Taquitos of being a 'Ponzi scheme masked in the guise of a restaurant franchise operation' that misused franchisee funds."
"The complaint stated that plaintiffs were consistently supplied with taquitos that were clearly frozen from questionable supplies, contradicting promises of high-quality, daily deliveries."
Roll-Em-Up Taquitos, a fast-casual Mexican chain founded in 2019, is facing lawsuits from franchisees accusing it of breach of contract and operating as a Ponzi scheme. Franchisees allege the company misused funds and provided inflated performance numbers to attract new franchisees. Additionally, the CEO is being sued for failing to make payments on a luxury car purchased in the company's name. Concerns have also been raised about the quality of the taquitos supplied to franchisees, which were claimed to be frozen and of questionable origin.
Read at SFGATE
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