The Czech franchise group behind brands such as Trdlokafe and Bubblify is facing mounting financial and legal pressure, raising concerns among investors and business partners.

The company, Twist, which once promoted plans to expand across Europe, has entered 2026 dealing with debt proceedings, store closures, and the loss of its Prague headquarters.

Two creditor-led insolvency cases have been launched this year against companies within the group.

Landlords, including major shopping centers such as Nový Smíchov and Harfa, are among those seeking repayment, alongside suppliers and contractors who claim outstanding invoices.

Several outlets, including locations in central Prague, have shut their doors in recent months. Company representatives describe the closures as part of a broader effort to eliminate underperforming sites while opening new ones elsewhere.

But some franchise operators tell a different story, saying they were not informed in advance about closures or operational changes affecting their businesses.

At one site near Můstek operations have reportedly been transferred to another company under a management agreement, even though the original franchise holder remains listed as the owner. Such arrangements have added to confusion within the network and raised questions about transparency.

According to available information, Twist has struggled to meet rent obligations, prompting it to vacate its registered office in Prague’s Libeň district by the end of April. Business partners have previously reported delayed payments for services ranging from construction work to lease agreements. In some cases, payments were only settled after legal proceedings had begun.

The company maintains that delayed payments are not unusual in the food and beverage sector. Still, the situation has led to a loss of confidence among some collaborators.

Josef Dušatko, the founder of the Kytky od Pepy flower chain, has stepped away from the group after selling his business to Twist last year and continuing its development under the company’s umbrella.

Twist built its business model on offering franchise opportunities tied to brands including Trdlokafe, Bubblify, Kofi Kofi, and Kytky od Pepy.

These investments, often priced in the millions of Czech crowns, were marketed as a form of passive income, with the company handling day-to-day operations. Earlier projections suggested annual returns exceeding 30 percent, though these figures were later revised downward.

Some franchisees now report that actual earnings have fallen short of expectations. Others say that promised retail locations were not always secured in advance, leaving investors exposed to additional risk.

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