The allegations are part of a federal lawsuit involving Hooters of America and Hoot Owl Restaurants, which operates several Hooters establishments in New Jersey, Pennsylvania and Delaware. "This third closure of one of Hoot Owl's franchised restaurants will cause even more damage to the goodwill of the Hooters brand," Hooters of America states in court filings. Three lawyers for Hoot Owl Restaurants, which operates the East Coast group of Hooters restaurants, didn't respond to requests for comment. Hooters of America is asking a federal judge to decide which states govern its franchise agreements with Hoot Owl so that it can terminate them. In August, an inspection uncovered several major violations at the Paramus Hooters, according to the lawsuit.

Source: ABC News October 12, 2016 07:52 UTC