Hooters: Franchise partner damaging its brand on East Coast

MarketsAssociated Press

The Georgia-based parent firm of Hooters restaurants says swarming flies and a plumbing backup that left standing water plagued a now-abandoned New Jersey Hooters.

Hooters of America LLC says in recent court filings that a Hooters in Paramus, New Jersey, is the latest restaurant that fell into "deplorable" conditions and closed.

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The allegations are part of an ongoing federal lawsuit between Hooters of America and Hoot Owl Restaurants, which operates several Hooters establishments in New Jersey, Pennsylvania and Delaware.

Three lawyers for Hoot Owl Restaurants, which operates the East Coast group of Hooters restaurants under franchise deals, didn't respond Tuesday to requests for comment.

Hooters maintains the franchise operator is damaging its national brand by failing health inspections and by abandoning restaurants in Warwick, Rhode Island; Rehoboth Beach, Delaware; and most recently in Paramus.