Beef-a-Roo in nearly half-million dollar dispute with landlord over unpaid rent
By Kevin Haas
Rock River Current
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ROCKFORD — The landlord that owns seven Beef-a-Roo locations in the area claims that it’s owed nearly a half-million dollars in past due rent, according to eviction proceedings filed in Winnebago County Court.
Beef-a-Roo has countered that it received no consideration before the rent was increased and those changes to its lease should be null and void, according to a legal response filed last week. It also disputes the amount the landlord says is owed.
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Store Master Funding XVIII, through its attorneys at Chicago-based Swanson, Martin & Bell, filed multiple suits on March 24 seeking past due rent and potential eviction from the seven restaurants in Rockford, Roscoe, Loves Park and Machesney Park. Since then, the courts have combined those cases to move forward jointly next month.
The lawsuit claims Beef-a-Roo was given a five-day notice on March 5 of unpaid rent amounting $455,823.59.
The suit applies to the Beef-a-Roo restaurants at:
- 2538 Auburn St., Rockford
- 3401 S. Alpine Road, Rockford
- 4601 Adamson Lane, Machesney Park
- 5109 Rockrose Circle, Roscoe
- 6116 N. Second St., Loves Park
- 6380 Riverside Blvd., Loves Park
- 6593 Lexus Drive, Rockford
Those restaurants had an initial base rent of roughly $1.3 million when the lease was enacted in September 2019, with annual increases built in, according to a copy of the agreement included in court documents. The lease runs through September 2039.
At issue is an amendment to the terms of the lease made in October 2021, which increased the base annual rent.
“Although the first amendment to the master lease increased the rental obligation of Beef-a-Roo, Beef-a-Roo received no consideration in connection with the execution of that first amendment,” a legal response filed by Rockford-based AGHL Law on behalf of Beef-a-Roo states. “Because Beef-a-Roo received no consideration in connection with the execution of the first amendment, the first amendment is null and void for lack of consideration.”
The start of the initial lease came as Beef-a-Roo ownership was transferred from the local family that ran it for years to a Dallas-based private equity firm.
Messages left for Beef-a-Roo President Jeff Love, the founder of Dallas-based Elysian Capital which acquired Beef-a-Roo in 2019, were not returned. Calls to local executives with Beef-a-Roo were also not returned, nor were calls to attorneys for Store Master Funding.
All the local Beef-a-Roo locations are continuing to operate as normal as the lawsuit proceeds in court.
The case comes as Beef-a-Roo is expanding around the country through its franchise program, which is run by a separate company Next Brands that acquired the franchise rights in 2021. The expansion includes five new locations that opened outside of Illinois in the last six months of 2023. A groundbreaking was also held March 17 for a new Beef-a-Roo in Freeport.
The eviction case is due back in court June 10.
This article is by Kevin Haas. Email him at khaas@rockrivercurrent.com or follow him on X at @KevinMHaas or Instagram @thekevinhaas and Threads @thekevinhaas
