Hendrick Motorsports Sues Hooters for Unpaid Sponsorship Fees

Hendrick Motorsports has initiated legal action against former sponsor Hooters of America LLC, seeking $1.7 million plus interest for alleged unpaid sponsorship fees. The complaint accuses Hooters of breach of contract and unjust enrichment.

Unjust enrichment occurs when Party A confers a benefit upon Party B without Party A receiving the proper restitution required by law. 

Hooters has been a multi-race sponsor for Chase Elliott and has been a primary scheme on the No. 9 Chevrolet Camaro for 24 races since aligning with Hendrick Motorsports in 2017. Elliott was proud to give Hooters a win at Texas this year.

As noted by the Charlotte Business Journal, the lawsuit claims that Hooters was contractually obligated to make four annual payments totaling $1.75 million. Quarterly due dates were March 10, June 10, August 10, and October 10. Quick math indicates those quarterly payments should have totalled $425,000 each. However, HMS alleges that Hooters made a partial payment of only $45,000 in March, and then failed to make the subsequent June payment.

According to the unjust enrichment clause, as we understand it, this would suggest that Hendrick upheld their end of the contract by placing Hooters on the car for the Texas race, despite the fact that the quarterly payment total was not met. Hooters then benefited from the promotion, particularly in light of Elliott’s win, and then allegedly breached the contract entirely.

“Hooters has also informed HMS that it will not be paying any portion of the remaining two installments for the 2024 term, due on August 10, 2024, and October 10, 2024, under the Sponsorship Agreement as amended,” the complaint states. “With no other options to protect its rights and interests, HMS is filing this action to enforce its contractual rights.”