Geddo Corporation Bankruptcy: Farmer Boys Franchisee Files Chapter 11 in California
Geddo Corporation, operator of 12 Farmer Boys restaurant locations in Southern California, filed chapter 11 with $1-10 million in assets against $10-50 million in liabilities. The Sadek family franchisee filed amid Californias $20 fast-food minimum wage and rising operating costs across the restaurant sector.
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Geddo Corporation and affiliated debtor entities, a franchisee and operator of Farmer Boys restaurants based in Orange, California, filed chapter 11 petitions on March 31, 2026, in the U.S. Bankruptcy Court for the Central District of California, case number 26-11022. The debtors reported assets of $1 million to $10 million and liabilities of $10 million to $50 million. The petition states that funds are expected to be available for distribution to unsecured creditors.
George Sadek, the company's CEO, leads the debtor entities. Garrick A. Hollander of Winthrop Golubow Hollander, LLP serves as bankruptcy counsel. The filing adds to a growing list of California-based restaurant franchisee chapter 11 cases in 2025 and 2026, a period in which total commercial chapter 11 filings reached 2,422 nationally during the first quarter of 2026, a 37% increase over the first quarter of 2025.
| Debtor(s) | Geddo Corporation (and affiliated debtor entities) |
| Court | U.S. Bankruptcy Court, Central District of California |
| Case Number | 26-11022 |
| Petition Date | March 31, 2026 |
| Assets | $1 million to $10 million |
| Liabilities | $10 million to $50 million |
Farmer Boys Chain Background and Franchise Model
Farmer Boys is a California-based fast-casual restaurant chain founded in 1981 by the Havadjias brothers, immigrants from Cyprus who had previously operated Astro Burgers in Torrance, California and Theodore's Restaurant in Hollywood. The first Farmer Boys location opened in Perris, California after a name change from McCoy's Restaurant. The chain is headquartered in Riverside, California and operates a fast-casual menu focused on farm-fresh ingredients.
Growth and franchise launch. Farmer Boys grew to eight locations over its first 16 years before launching its franchise model in 1995, with the first franchised location opening in Temecula, California. By 2003 the chain had 25 restaurants, and by 2005 it had reached its 50th location. As of October 2025, Farmer Boys operates 102 restaurants across California, Nevada, and Arizona.
Franchise economics. A Farmer Boys franchise requires an initial franchise fee of $45,000 and a total investment of $1,056,000 to $2,520,000 per location. Franchisees pay a 5% royalty on gross sales and must meet minimum financial requirements of $200,000 to $500,000 in liquid capital and a $750,000 net worth. Franchise agreements run for 20 years. In 2025, Farmer Boys introduced an area development agreement incentive program offering a $100,000 royalty rebate per location for franchisees signing multi-unit commitments of four or more restaurants. Farmer Boys was ranked number 10 in the 2025 Fast Casual Top 100 Movers & Shakers awards.
Geddo Corporation's Franchise Portfolio and the Sadek Brothers
George Sadek and his brother Joseph began their Farmer Boys franchise operations in 2007, bringing 38 years of combined culinary experience including prior roles as area directors for another restaurant brand. The Sadek brothers built a multi-unit franchise portfolio, operating 12 Farmer Boys locations in California. Joseph Sadek stated that the brothers were "immediately attracted to the concept and its mission of providing farm-fresh food" and that they joined the brand when it was "small enough at the time to foster mutual growth." Both brothers are members of the local chambers of commerce across their business locations.
Expansion commitments. In September 2023, the Sadek brothers signed development agreements for two new restaurants in Visalia and Kern County, expanding beyond their Southern California base into California's Central Valley. In November 2025, Farmer Boys announced that George and Joseph Sadek had signed a 10-unit area development agreement for the West Valley area of Phoenix, Arizona, with the Sadeks participating in the brand's $100,000-per-location royalty rebate program. George Sadek stated at the time that the "royalty rebate incentive made this growth opportunity even more compelling." The press release noted that other franchisees had additional Farmer Boys restaurants in development in Arizona in the East Valley, Maricopa, and Tucson regions.
Status of expansion agreements. The chapter 11 filing by Geddo Corporation came approximately four months after the Arizona development agreement announcement. The petition filings do not specify which of the 12 California locations or the Arizona development rights are covered by the chapter 11 case.
California Restaurant Franchise Cost Pressures
The Geddo Corporation filing follows a pattern of California-based restaurant franchisees seeking chapter 11 protection in 2025 and 2026. California's $20-per-hour fast-food sector minimum wage, which took effect in April 2024, applies to fast-food chains with 60 or more locations nationally. A UC Santa Cruz study found the policy led to higher menu prices, reductions in working hours, elimination of overtime, and upward pressure on wages at independent restaurants outside the covered chains.
Carl's Jr. franchisee. In April 2026, Friendly Franchisees Corporation, a 65-unit Carl's Jr. operator that had owned its locations for more than two decades, filed chapter 11 in the Central District of California. A related entity, Sun Gir, which operates 59 of those locations in Southern California, reported $19.9 million in net sales during the first quarter of 2026 but generated a $2 million net loss over the same period. Franchisee Harshad Dharod stated the $20 wage "materially increased operating expenses" and also cited reduced marketing effectiveness and a lack of innovation at the franchisor level. Carl's Jr. U.S. system sales declined 6% in 2025, average-unit volumes dropped 2.7% to $1.4 million, and franchisees closed 40 locations that year.
Rubio's Coastal Grill. Rubio's closed 48 California locations in May 2024 and filed chapter 11 in June 2024, citing "diminishing in-store traffic" and "significant increases to the minimum wage in California" among the factors. The chain continued to operate 86 restaurants in California, Arizona, and Nevada after the closures.
FAT Brands. FAT Brands, the parent company of Fatburger, Johnny Rockets, Round Table Pizza, and 15 other restaurant brands operating across more than 2,000 locations worldwide, filed chapter 11 in January 2026 in the Southern District of Texas with approximately $1.3 billion in debt. Creditors had accelerated roughly $1.26 billion in securitized debt in November 2025 after the company missed payments, and FAT Brands reported only $2.1 million in cash on hand at the time of the filing. The company has since outlined plans to pursue a court-supervised sales process for its restaurant brands.
Broader filing environment. Total commercial chapter 11 filings reached 2,422 in the first quarter of 2026, a 37% increase from 1,764 in the first quarter of 2025, according to Epiq. Subchapter V small-business elections rose 67% year-over-year to 833 filings during the same period. Total overall commercial bankruptcies in the first quarter of 2026 reached 8,436, a 14% increase over the prior year's 7,375 filings.
Geddo Corporation's financial position. The Geddo Corporation petition does not identify specific causes of the filing. The reported liability range of $10 million to $50 million against assets of $1 million to $10 million is disclosed on the petition, but the first day filings have not yet disclosed the composition of that debt or the specific operational pressures that led to the filing.
Early Filing Posture and Unsecured Creditor Prospects
The petition's disclosure that funds are expected to be available for distribution to unsecured creditors distinguishes the case from many small-business franchise filings, where unsecured creditors often face no recovery. The specific amount, timing, and form of any distribution remain undisclosed at this stage.
Case path. The filing is in its earliest days, with no DIP financing motion, cash collateral order, or plan of reorganization on the docket. Farmer Boys franchise agreements typically run for 20 years, and the treatment of those agreements — including whether the debtors assume or reject individual franchise agreements under section 365 of the Bankruptcy Code — is among the pending issues in the case.
Counsel. Garrick A. Hollander, the debtors' lead attorney, is a co-founder and co-managing partner of Winthrop Golubow Hollander, LLP, a Newport Beach-based insolvency firm with offices in Newport Beach and New York. Hollander is a CPA and co-founder of the firm, which focuses on chapter 11 reorganizations, out-of-court workouts, distressed acquisitions, and assignments for the benefit of creditors.
Key Timeline
| Date | Event |
|---|---|
| 1981 | Farmer Boys founded in Perris, California by the Havadjias brothers |
| 2007 | George and Joseph Sadek begin Farmer Boys franchise operations |
| September 2023 | Sadek brothers sign development agreements for Visalia and Kern County locations |
| April 2024 | California's $20-per-hour fast-food minimum wage takes effect |
| November 2025 | Sadek brothers sign 10-unit Arizona area development agreement with Farmer Boys |
| March 31, 2026 | Geddo Corporation files chapter 11 petitions in the Central District of California |
Frequently Asked Questions
What is Geddo Corporation?
Geddo Corporation is a franchisee and operator of Farmer Boys restaurants based in Orange, California. The company is led by CEO George Sadek, who along with his brother Joseph built a multi-unit Farmer Boys franchise portfolio of 12 locations in California.
When did Geddo Corporation file for bankruptcy?
Geddo Corporation and affiliated debtor entities filed chapter 11 petitions on March 31, 2026, in the U.S. Bankruptcy Court for the Central District of California under case number 26-11022.
How many Farmer Boys locations does Geddo Corporation operate?
The Sadek brothers operate 12 Farmer Boys locations in California and had signed a 10-unit area development agreement for the Phoenix, Arizona area in November 2025. The petition filings do not specify which locations or development commitments are included in the debtor entities.
Will unsecured creditors receive a distribution?
The petition states that funds are expected to be available for distribution to unsecured creditors, though no specific amounts, timelines, or distribution mechanisms have been disclosed at this early stage of the case.
What is Farmer Boys?
Farmer Boys is a California-based fast-casual restaurant chain founded in 1981 by the Havadjias brothers and headquartered in Riverside, California. The chain operates 102 restaurants across California, Nevada, and Arizona and serves a fast-casual menu. Farmer Boys is the franchisor; Geddo Corporation is a separate franchisee entity.
Who is representing Geddo Corporation in the bankruptcy?
Garrick A. Hollander of Winthrop Golubow Hollander, LLP, a Newport Beach-based insolvency firm, serves as bankruptcy counsel for the debtor entities. Hollander is a CPA and co-founder of the firm with experience in chapter 11 reorganizations and distressed-asset sales.
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This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. Read our full disclaimer.