Hendrick Motorsports Is Suing Hooters Over Unpaid Sponsorship Fees

An entity affiliated with NASCAR Cup Series team Hendrick Motorsports is suing Hooters for $1.7 million — plus interest — over alleged unpaid sponsorship fees.

According to court records obtained by The Charlotte Ledger, HMS Holdings LLC filed its complaint on July 30, suing the restaurant chain for breach of contract and unjust enrichment.

This lawsuit comes just weeks after Hendrick terminated its agreement with Hooters to sponsor driver Chase Elliott. Hooters had sponsored Elliott on a part-time basis since 2017, including serving as the primary sponsor on his No. 9 car in 24 races.

Chase Elliott celebrates in victory lane after winning the AutoTrader EchoPark Automotive 400 at Texas Motor Speedway in April 2024.

(Photo by Chris Graythen/Getty Images)

Per the complaint, Hooters was bound by its sponsorship contract to pay Hendrick Motorsports four annual installments totaling $1.75 million, with payment dates scheduled for March 10, June 10, Aug. 10 and Oct. 10. HMS alleges that the company made a partial payment of $45,000 in March, but then failed to make its next payment in June.

Hendrick also claims that Hooters refuses to pay any future installments — leaving HMS "with no further options to protect its right and interests," according to the filing.

Hendrick terminated its agreement with Hooters this summer.

(Photo by Todd Kirkland/Getty Images)

The alleged failed payments come at a time when Hooters is closing stores nationwide. 

Nation's Restaurant News reported in June that roughly 40 of the 300 locations worldwide were closed, which included restaurants in Florida, Kentucky, Rhode Island, Texas and Virginia. The chain has now shut down 12% of its locations since 2018, according to restaurant consulting firm Technomic.