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Burgerim, the mini burger-focused concept that originated in Israel and was brought to the United States in 2014 by Oren Loni, sold more than 1,000 franchises within five years. Hundreds of franchisees paid the $50,000 franchise fee, built and opened stores, but didn't come close to the 23 percent operating profits Loni promised, says franchisee Robert Jameson.

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When Burgerim began selling franchises in the U.S., it did so without the usual validation. What Burgerim did have was its president, Oren Loni, an Israeli citizen who claimed to have extensive experience in launching "highly successful" restaurant franchises in Israel and other European countries.

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Burgerim, of Encino, California, is one of the nation's fastest-growing better burger chains, with 80 units open around the country and more than 600 franchises sold since the start of 2017. How a franchise could hit those numbers with no corporate stores or national ad campaign is only part of the mystery.

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