Roark Capital’s Booming Wage Theft Risk

The report examines Roark Capital's extensive portfolio of fast-food franchises, highlighting a pattern of wage and hour violations across brands like Dunkin' Donuts, Sonic Drive-In, and Jimmy John's. It argues that Roark faces significant legal liability due to a 2020 court ruling on joint employer status and operational risks stemming from labor shortages caused by poverty wages. Additionally, the document details Roark's lobbying efforts through Inspire Brands and the National Restaurant Association to oppose federal minimum wage increases.

• Roark Capital's acquisitions, including the December 2020 purchase of Dunkin' Brands, have expanded its workforce to nearly 1 million people across its owned companies and franchisees.
• Dunkin' Donuts has a significant history of wage violations; since 2010, over 450 US Department of Labor investigations led to orders for the brand to pay more than $1.5 million in back wages to over 3,600 workers.
• Other Roark-owned brands have faced similar penalties: Sonic Drive-In was ordered to pay over $960,000 in back wages and $232,000 in penalties since 2010, and Jimmy John's was ordered to pay nearly $1.6 million in back wages since 2010.
• A September 2020 federal court ruling increased Roark's legal liability by expanding the 'joint employer' definition, meaning parent corporations can be held responsible for franchisee wage violations if they have indirect control over employment terms.
• Roark Capital actively opposes increasing the federal minimum wage; its division Inspire Brands claimed success in helping to defeat the Raise the Wage Act, and Roark maintains strong ties to the National Restaurant Association.
• Low pay at Roark-owned brands, where many jobs pay between $10 and $12 per hour, has contributed to labor shortages that force some restaurants to cut hours or close dining areas.
• A US General Accounting Office report indicated that workers at several Roark-owned chains, including Hardee's, Arby's, Sonic, and Dunkin' Donuts, are among the most frequent recipients of Medicaid and food stamps (SNAP) in various states.

APA

Ash, J. (2021). Roark Capital’s Booming Wage Theft Risk. Private Equity Stakeholder Project. https://pestakeholder.org/wp-content/uploads/2021/08/Roark-Capital-Wage-Theft_PESP_July2021.pdf

Chicago

Ash, Jordan. Roark Capital’s Booming Wage Theft Risk. Private Equity Stakeholder Project, 2021. https://pestakeholder.org/wp-content/uploads/2021/08/Roark-Capital-Wage-Theft_PESP_July2021.pdf.

Wikipedia

{{cite report |last1=Ash |first1=Jordan |title=Roark Capital’s Booming Wage Theft Risk |publisher=Private Equity Stakeholder Project |date=July 2021 |url=https://pestakeholder.org/wp-content/uploads/2021/08/Roark-Capital-Wage-Theft_PESP_July2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{ash2021roark, author = {Ash, Jordan}, title = {{Roark Capital’s Booming Wage Theft Risk}}, institution = {Private Equity Stakeholder Project}, year = {2021}, month = jul, url = {https://pestakeholder.org/wp-content/uploads/2021/08/Roark-Capital-Wage-Theft_PESP_July2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }