RAVE RESTAURANT GROUP, INC.
For the period ended Sep 27, 2026. Filed Nov 9, 2026.
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Sep 27, 2026 · Filed Nov 9, 2026
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Legal Proceedings
Item 1. Legal Proceedings
On August 31, 2026, the Company’s Chief Executive Officer, Mr. Brandon Solano, delivered email correspondence (the “Solano Correspondence”) to the Chairman of the Company’s Audit Committee, Mr. William C. Hammett, Jr., to “formally complain about workplace harassment and discrimination by RAVE Restaurant Group’s Board of Directors, the Compensation Committee members, and Chairman Mark Schwarz.” The Solano Correspondence claimed harassment, intimidation, and threats, resulting in the Company’s failure to increase Mr. Solano’s annual base salary.
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The Solano Correspondence included a request for the Company to conduct “an investigation by an outside investigator to address these concerns” (an “Investigation”). Mr. Solano also claimed that he had “filed a complaint with the Civil Rights Division of the Texas Workforce Commission due to the discrimination I have endured from RAVE’s board” (the “Texas Workforce Claim”).
The Board takes any claim of harassment or discrimination very seriously. The Company engaged the Hagan Law Group on September 1, 2026, to conduct an Investigation. The charges of discrimination and harassment contained in the Solano Correspondence were investigated by The Hagan Law Group, and the accusations contained therein were found to be meritless. As to the discrimination charges related to Solano’s Texas Workforce Commission proceeding, the Company has received no notice of other communications from the Texas Workforce Commission relating to these claims as of the date of this report.
In addition to the foregoing, the Company is subject to various claims and contingencies related to employment agreements, franchise disputes, lawsuits, taxes, food product purchase contracts and other matters arising out of the normal course of business. Management believes that any such claims and actions currently pending are either covered by insurance or would not have a material adverse effect on the Company’s annual results of operations or financial condition if decided in a manner that is unfavorable to the Company.
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