A multi-unit Dave’s Hot Chicken franchisee filed for bankruptcy as it seeks to reorganize a portfolio spanning Pennsylvania, New Jersey, and Delaware.
TIG Reaper LLC and three affiliates—Reaper Time PA 1 LLC, Reaper Time PA 2 LLC, and Reaper Time NJ 1 LLC—filed for bankruptcy protection on September 21. The companies are affiliated with Jiger Patel, who identified himself in court documents as a member and manager of each debtor.
Seven restaurants were open at the time of the filing, with another location in Rehoboth Beach, Delaware, expected to open around October 15. The portfolio also includes restaurants in Willow Grove, Quakertown, Dover and Warrington, Pennsylvania, as well as Flemington, New Jersey, according to an exhibit filed with the bankruptcy declaration.
The franchisee said it is current on all franchise fees and royalties owed to Dave’s and asked the bankruptcy court for permission to continue honoring its franchise agreements, loyalty programs, promotions and marketing obligations during Chapter 11.
Court documents indicate the bankruptcy follows a dispute with Bank Midwest, which provided TIG Reaper with significant financing in 2024.
In August 2024, Bank Midwest issued a $1.65 million term loan to TIG Reaper and an additional $8.35 million revolving credit facility. The restaurant group also turned to merchant cash advance financing before filing for bankruptcy. Court documents reference roughly $105,000 in financing from Parafin in January 2026, along with additional merchant cash advance lenders.
The dispute with Bank Midwest escalated earlier this month. On September 8, the lender filed a complaint alleging various payment defaults and sought the appointment of a receiver, according to the bankruptcy declaration. The debtors dispute that they were in default.
The dispute also involves loans Bank Midwest made to a separate group of restaurant businesses referred to in court documents as the “Queso Entities.” The Dave’s franchisee claims Bank Midwest improperly tried to hold it responsible for those debts, even though it had not guaranteed the loans.
According to the filing, Bank Midwest accelerated the Dave’s operator’s loans and moved to appoint a receiver after the franchisee declined to take responsibility for the Queso debt. The operator argues those actions disrupted a potential sale of its business. At the time, it said it had received an offer of approximately $30 million, which would have been enough to repay Bank Midwest.
The franchisee is now seeking damages and other relief from the lender and argues the dispute contributed to its Chapter 11 filing.
For now, the franchisee plans to continue operating its restaurants through bankruptcy.
The debtors said their principals are also providing a $200,000 junior debtor-in-possession loan to support liquidity during the initial stage of the bankruptcy case.
The debtors stressed that their issues do not involve unpaid obligations to Dave’s. They told the court there is no amount currently due to the franchisor, and each restaurant is a custom-built Dave’s location.
The bankruptcy comes against a much stronger backdrop for the broader Dave’s system. The brand opened a record 136 restaurants in 2025 and reached its 400th location with a debut in Abu Dhabi, United Arab Emirates. Roark Capital also acquired Dave’s in a $1 billion deal in June 2025, and longtime president and COO Jim Bitticks was subsequently named CEO.
Expansion has continued on several fronts. Dave’s signed an agreement with Azzurri Group for 180 restaurants across 10 European countries and added development agreements in several U.S. markets. The brand expanded into nontraditional development as well, opening its first airport restaurant at Harry Reid International Airport in Las Vegas.
