Qargo Coffee Clarifies Prior Consulting Role as Brand Continues Building a Disciplined Franchise System

Qargo Coffee is providing additional context regarding Mark Bastorous’s past consulting engagement with Burgerim while reaffirming the company’s commitment to responsible franchise development and transparent business practices.

In 2017, through an independent entity, Mark Bastorous LLC, Bastorous entered into a Franchise Development Services Agreement to provide consulting services related to franchise development activities. The engagement was structured as an independent contractor relationship and did not include employment, corporate management responsibilities, or any governance role within Burgerim or its affiliated franchisor entities.

The consulting agreement focused specifically on franchise development support, a role commonly performed by third party consultants across the franchise industry. During the period of the agreement, the territory under those development activities experienced significant expansion, increasing from approximately seventeen operating locations to more than one hundred thirty six licensed units in less than two years. The growth generated millions of dollars in franchise fees for the franchisor.

In 2019, disputes arose regarding payments owed under the agreement. Through legal counsel, a formal Notice of Default and Termination was issued after Burgerim failed to satisfy substantial contractual payment obligations. The notice outlined that approximately 2.6 million dollars remained outstanding, along with more than 1 million dollars owed for franchise sales completed within the territory. Additional amounts were subject to accounting reconciliation.

The notice further identified several contractual defaults, including delayed payments, lack of financial transparency, and failure to provide certain franchisor support obligations required under the agreement. At that stage, the relationship had evolved into a commercial dispute over unpaid contractual obligations, with Bastorous’s entity effectively acting as a creditor seeking payment for services rendered.

This distinction is important in the context of federal franchise disclosure rules. The FTC generally focuses on individuals who hold management responsibility within a franchisor organization, such as officers, directors, or executives responsible for operating the franchise system. Because the consulting role was performed through a separate legal entity without corporate authority or decision making power within Burgerim, Qargo Coffee’s disclosures were prepared based on the understanding that such consulting work did not fall within that category.

Nevertheless, Qargo Coffee maintains a strong commitment to regulatory compliance and transparency. Should regulators determine that additional clarification regarding prior consulting relationships would be beneficial for future disclosures, the company remains fully prepared to expand those disclosures accordingly.

Qargo Coffee was founded with a vision to combine the heritage of Italian coffee culture with disciplined, modern franchise operations in the United States. The brand continues to focus on building a structured and responsible franchise system designed to support entrepreneurs, create sustainable opportunities for franchise partners, and deliver a consistently high quality customer experience.

As the company continues its development, the guiding principles remain clear. Integrity, transparency, and operational discipline are central to building long term value for franchise partners and communities alike.