WATERTOWN — The U.S. Marshals Service has completed its auction of the Jreck Subs assets, revealing no additional information Monday about the buyer beyond the name of the limited liability company that submitted the highest bid.
The service said in a statement that Fresh Start Franchising Inc. had topped two other “best-and-final” bids to obtain Jrecks’ franchise rights, trademarks and other brand-related property.
The Marshals Service has been operating the chain since the previous principal of Jreck, Christopher M. Swartz, was sentenced in U.S. District Court, Utica, in July 2017 to 12½ years in prison for federal wire fraud and tax evasion convictions. As part of a plea agreement in the criminal case, Mr. Swartz agreed to forfeit his interests in Jreck.
A first round of bidding was open until Oct. 31, with a second round then giving the four highest bidders until Friday to submit their best and final bids. It’s unclear why only three bids were ultimately considered. A spokeswoman for the Marshals Service could not be reached for additional comment.
The highest bidder is now under obligation to close on the transaction by 2 p.m. Nov. 27, court documents show.
According to state Department of State records, there is no Fresh Start Franchising Inc. listed as being incorporated within the state, meaning the new Jreck owner is likely incorporated outside the state.