Two well-known Czech brands built around street food and drinks have entered bankruptcy, raising fresh questions about a franchise model that promised steady returns with minimal involvement.
Companies behind the Trdlokafe pastry stalls and the Bubblify beverage concept, both part of the Twist group, confirmed their insolvency filings in the official register ahead of a hearing at the Municipal Court in Prague.
The move pulls additional businesses linked to the group into the proceedings, including the Naše Zmrzka project, according to reporting by Seznam Zprávy.
The financial troubles come after months of tension within the group. It recently severed ties with the founder of the Kytky od Pepy flower network, who has since launched a competing venture.
At the center of the Bubblify case is a claim filed by Alkony-CZ, a company controlled by receivables trader Petr Bujnoch. The claim is tied to earlier developments involving the Oxo chain, which once drew investment from hockey player Jakub Voráček. Bubblify has disputed the claim and initially sought to challenge the proceedings, but additional creditors have since joined the case.
Those creditors include franchise operators, landlords, and suppliers, many of whom report overdue payments. Some outlets had already shut down before the bankruptcy filings were made.
The Twist group, led by entrepreneurs Radek Klein, Andrey Fenn and Daniel Ryška, had marketed its franchise system as a hands-off investment. Buyers were told they could invest millions of crowns without managing day-to-day operations, as the group would run the outlets on their behalf.
However, the business model relied heavily on selling franchise licenses rather than generating income from store operations. Several franchisees now say the expected returns never materialized. Some have filed criminal complaints, alleging they were misled about the profitability of the investment.
