The Graze Craze lawsuit and regulatory record spans two different companies sharing the name: the original Oklahoma corporation founded by Kerry Sylvester, which faced a breach-of-contract suit, multiple evictions, and unpaid-wage complaints; and the Florida-based franchisor acquired by United Franchise Group, which was penalized by California regulators for selling unregistered franchises and later sued over website accessibility.
Two Companies, Two Sets of Problems
Kerry Sylvester founded Graze Craze in Oklahoma and opened the first location in 2020.1Newsday. Charcuterie Shops In August 2021, United Franchise Group acquired the brand and built out a franchise system through a new entity, Graze Craze Franchising, LLC, based in West Palm Beach, Florida. The trademarks had already been transferred from the original Oklahoma corporation, Graze Craze, Inc., to the new franchising entity in February 2021.2Unhappy Franchisee. Graze Craze Franchise
That split matters when reading the legal record. The Oklahoma company continued to operate stores under Sylvester and accumulated most of the debt-related litigation. The Florida franchisor is the entity named in the California enforcement action and the accessibility suit.
Breach of Contract Suit From a Marketing Firm
On October 21, 2021, a marketing firm called Insight Creative Group sued Graze Craze, Inc. in Oklahoma County District Court for breach of contract, alleging the company failed to pay $31,394.99 for work performed. The case, numbered CJ-2021-4484, also included allegations of fraud.3Unhappy Franchisee. Graze Craze Franchise Kerry Sylvester The lawsuit was dismissed with prejudice on December 16, 2021, which typically indicates a settlement.4UniCourt. Insight Creative Group, Inc. v. Graze Craze, Inc.
Evictions and Default Judgments
Around the same time, several eviction cases were filed against the Oklahoma company and Sylvester personally. In October 2021, Tom Bernard and others filed a forcible entry and detainer action against Sylvester over a Newcastle, Oklahoma property. On November 15, 2021, Roland Investments, Ltd. sued Graze Craze, Incorporated in Tulsa County over a property on West Stonewood Drive in Broken Arrow. A default judgment was entered on December 2, 2021 for $6,623.60, followed by a garnishment affidavit in February 2022.5UniCourt. Roland Investments, Ltd v. Graze Craze Incorporated The Broken Arrow property had been listed on the Graze Craze website as a “Coming Soon” location.3Unhappy Franchisee. Graze Craze Franchise Kerry Sylvester
In March 2022, Heritage Hills Apartments filed a separate eviction case against Sylvester personally. The court entered a default judgment for possession and $14,508.48 in rent defaults covering November 2021 through March 2022.3Unhappy Franchisee. Graze Craze Franchise Kerry Sylvester
Unpaid Wages at the Yukon Store
In June 2023, KFOR-TV in Oklahoma City reported that former employees of the Graze Craze location in Yukon, Oklahoma said they had not been paid for months. Caitlin Pittman said she was owed more than $1,200. Addison Breanne said she was owed $1,000. They said at least ten other employees were affected. Both filed wage claims with the Oklahoma Department of Labor, which confirmed an investigation.6KFOR. Graze Craze Inc. Employees Claim They Haven’t Been Paid in Months
The employees said the location had been run by an interim manager, James Adam Jenkins, whom they accused of going silent, promising bonuses that never came, pressuring staff to sign non-disclosure agreements, and threatening legal action against anyone who spoke out. When KFOR visited the storefront, an eviction notice was posted on the door, and the Oklahoma Secretary of State’s website showed the company’s entity license had been suspended for tax non-compliance.
Sylvester told KFOR that Jenkins had been appointed interim manager because she had been diagnosed with stage 4 terminal cancer. She acknowledged that back pay was owed to four employees and said debts to vendors and the license suspension would be addressed during a restructuring. A plumbing company also reported being owed about $4,200 for work done in March 2023.6KFOR. Graze Craze Inc. Employees Claim They Haven’t Been Paid in Months
California Penalty for Selling Unregistered Franchises
The California Department of Financial Protection and Innovation took enforcement action against Graze Craze Franchising, LLC and its parent, UFG Group, Inc. (doing business as United Franchise Group), for violations of California’s Franchise Investment Law. According to the consent order, on October 8, 2021, at “The Franchise Show” in Pasadena, Graze Craze offered an unregistered franchise to a Department employee. California law requires franchises to be registered before they can be offered for sale in the state. During the subsequent investigation, the respondents made a false statement to the Commissioner by claiming they had declined all franchise inquiries at the event.7California DFPI. UFG Graze Craze Consent Order
Under the consent order, Graze Craze and UFG paid a $5,000 administrative penalty and agreed to hire an independent monitor, a licensed attorney experienced in California franchise transactions, to review their franchise sales practices annually for three consecutive years covering 2023, 2024, and 2025. The respondents also accepted a desist-and-refrain order and waived their rights to a hearing or appeal.7California DFPI. UFG Graze Craze Consent Order
The DFPI entered a nearly identical order on the same date against another UFG brand, Great Greek Franchising, LLC, stemming from the same Pasadena event. That order included a $5,000 penalty and the same three-year monitoring requirement.8California DFPI. UFG Great Greek Consent Order
Website Accessibility Lawsuit
On September 20, 2024, a plaintiff named Rebecca Castillo filed a lawsuit in California against Graze Craze Franchising, LLC, alleging that the company’s website, grazecraze.com, was not sufficiently accessible to people with disabilities.9Accessibility.com. Rebecca Castillo vs. Graze Craze Franchising, LLC No resolution or current status is available in the public record reviewed.
UFG’s Broader Complaint History
The California action is not the only complaint tied to United Franchise Group. UFG’s Experimac brand, later rebranded to Experimax after a trademark dispute with Apple over the “Mac” name, drew scrutiny from its own franchisees. They filed complaints with the Federal Trade Commission alleging that UFG used financial projections drawn from a corporate-owned store that operated under a different business model than the one sold to franchisees, and that a third-party loan broker arranged SBA-backed loans using falsified revenue projections. As of 2020, an estimated 65% of Experimac stores had permanently closed.10Regulations.gov. FTC Franchise Rule Public Comment UFG has not publicly responded to many of those allegations in the documents reviewed.