Not paying back a business loan kicks off a process that can end up with the company being forced to liquidate.
“A business loan goes into default when you repeatedly violate the legal terms of your loan agreement. When you default on your loan, you’ve continuously missed payments — and have not reached a resolution with your lender. At this point, your lender has determined that you will not repay your debt,” according to NerdWallet.
It can kick off a process that may end in the business losing its collateral.
“Once you miss one or more business loan payments, the lender will likely contact you to inform you of the delinquency and try to reach a resolution. If you fail to respond and your loan falls into default, the lender will make every attempt to collect on the debt,” the financial website added.
That’s where one major Qdoba Mexican Eats franchise operator finds itself, and the case has moved to court.
Qdoba operator sued by its bank
Bank Midwest claims that a major Qdoba franchisee, Pennsylvania-based The Integritty Group (TIG), has defaulted on a $20 million loan that was taken out in April 2025, leaving approximately $18.3 million in outstanding debt across 41 restaurants, Nation’s Restaurant News reported.
The bank filed a lawsuit, which can be found on PacerMonitor, against the franchisee on Aug. 6 in the U.S. District Court for the Eastern District of Pennsylvania. The suit includes dozens of related Queso Time restaurant companies operating in Delaware, New Jersey, New York, Pennsylvania, and Florida.
“The complaint claims that TIG hid a ‘serious liquidity problem’ and — without notifying the bank — entered into a deal to terminate its franchise agreement with Qdoba and sell the restaurants it operates, putting the loan collateral at risk,” Kansas City Business Journal (KCBJ) reported.
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Bank Midwest, according to the lawsuit documents, wants the court to appoint a receiver to take over management of TIG’s restaurants and eventually sell its assets.
“In its complaint, Bank Midwest alleges TIG has not been in good standing with Qdoba Franchisor LLC, the business overseeing the chain’s franchising, since July 2025 but did not tell the lender until July 2026. At that time, TIG shared with the bank a March 2026 workout letter created with Qdoba Franchisor, documents show, according to KCBJ.
Qdoba is not part of the case
In a statement emailed to Nation’s Restaurant News, a company spokesperson wrote, “Qdoba is not a party to this complaint and has no comment on the allegations. We remain focused on serving our guests across the Philadelphia market.”
TIG has not commented publicly on the case, and its website has been taken down. Visitors to the site get the following message: “We are currently updating our site. Thank you for your patience and understanding. We will be back shortly.”
An archived version of the site from March 17 shares a number of facts about the company.
- TIG is based in the Philadelphia market with operating restaurants across New Jersey, Pennsylvania, Delaware, New York, and Florida.
- The company has 68 locations across five states.
- In addition to Qdoba, the website shows the chain operating Dave’s Hot Chicken, Green Turtle, Checkers, PayMore, and Ford’s Garage franchises.
The company also shared a statement on the web page devoted to its charitable efforts.
“TIG Corp. has built a strong reputation on core values like honesty, fairness, respect, and community. We are committed to not only providing exceptional services but also making a positive impact on the world around us,” it posted.
TIG and Bank Midwest’s dispute at a glance
“Per court filings, TIG owed approximately $432,000 in August rent for its Qdoba locations, more than $1 million in unpaid sales taxes, and over $300,000 owed to DoorDash. Notably, the bank offered $850,000 in emergency funding to stabilize operations, but TIG never signed the paperwork necessary to draw the funds. The case is ongoing,” according to KCBJ.
- Bank Midwest sued The Integritty Group (TIG), a Pennsylvania-based Qdoba franchisee, on Aug. 6, 2026, alleging the company defaulted on a $20 million loan. The lawsuit was filed in the U.S. District Court for the Eastern District of Pennsylvania.
- About $18.3 million remained outstanding on the loan, according to Bank Midwest’s allegations. NRN reports that the loan was originated in April 2025 and covered TIG’s restaurant operations.
- The loan was tied to 41 restaurants. TIG operates those Qdoba locations through numerous Queso Time entities across Delaware, New Jersey, New York, Pennsylvania and Florida.
- Bank Midwest alleges TIG violated the loan agreements and failed to cure the defaults after being given an opportunity to do so. These are allegations from the bank, not court findings.
- The loan dispute has also involved TIG’s Qdoba franchise agreements. Bank Midwest sought the emergency appointment of a receiver, and federal courts subsequently entered orders appointing a receiver over the Queso borrower and its assets and business operations.
- A Delaware federal court’s Aug. 24 order appointed GlassRatner Advisory & Capital Group as receiver of the Queso borrower and its assets and business operations.
- The litigation has spilled into multiple federal courts because the restaurant entities operate across several states. Related Bank Midwest proceedings were filed in Florida, Delaware, New Jersey, and New York under the federal receivership statute.
- Sources: NRN, Justia
There is no indication in the court filings that the 41 Qdoba restaurants have closed as the case makes its way through the court system.