City Lobster, Formerly BK Lobster, Evicted From Hoboken For Non-Payment Of Rent

HOBOKEN, NJ — City Lobster, which closed in Hoboken several months ago, has been evicted from its location at 732 Washington St., according to documents filed in Hudson County Superior Court.

Documents filed in January 2023 say the landlords were owed $59,401 in rent and late fees.

An eviction notice was placed on the window of the location on Tuesday, April 25.

The franchise opened as BK Lobster back in May 2021 — one of four BK Lobster locations in New Jersey that have closed since opening that year.

In March 2022, the Hoboken BK Lobster announced it would rebrand as City Lobster. But it didn't last a year.

The initial complaint, filed in Hudson County landlord/tenant court by K&C Hoboken Realty back in September 2022, said that the tenants owed $36,939 in rent and late fees at that point.

The complaint said that the tenants had stopped paying their $5,000 per month rent after Jan. 1, 2022.

A court hearing was held in January 2023, and a Warrant of Removal was issued for the tenants and their belongings by Hudson County Superior Court on Feb. 1, 2023.

A lease agreement between the franchisee and the landlord, attached to the complaint, says that the lease was signed for 10 years to begin March 1, 2021. The franchisee paid a $9,500 security deposit upon signing, documents show.

'Hot Water'

Reports in a New York City-based news outlet, The City, say that some franchises of BK Lobster are "in hot water" and that the situation is "boiling over" with franchisees suing the company, claiming they invested their money but didn't get enough support to stay open.

Plaintiffs include a Jersey City woman who sued BK Lobster Franchise Systems, Inc., according to one article. The story says that according to her lawsuit, she invested $15,000, then faced failed promises from the company to train staff and more.

A follow story on April 18 says that the company is the target of at least 14 lawsuits in New York state, and that the Brooklyn District Attorney's Office is investigating.

In the stories, the company's CEO acknowledges failing to register several of the franchises properly in New York.

Patch has reached out to City Lobster for comment and will update the story when comment is received.

Other New Jersey Locations Have Closed

Several BK Lobster franchises that opened in 2021 have closed, including locations in Maplewood and in Elizabeth.

A franchise in Linden that opened in 2021 was also rebranded to City Lobster, then closed this past February 2023. A friend of the owners started a fundraiser to keep it open, managing to raise $560 of a $56,453 goal.

"The dream of owning a restaurant has been a goal of my dear friends Kwanza, Claude and Ron," wrote the organizer. "When the opportunity presented itself, they seized the opportunity...Unfortunately, the many hurdles and hardships experienced as first-time restaurant owners have led them to some serious financial strain."

Other BK Lobster franchises are still opening around the country, most recently, a store in the Poconos in March.

The company's homepage tells investors that BK is "The coolest franchise to own" and that they need to invest less than $200,000.

An Instagram page has been started, criticizing the company's operations.