Justin Butler

Full Report

Key Points

• Justin Butler, a 41-year-old bank executive from Woodbury, Minnesota, faces felony charges for allegedly falsifying financial statements during the 2022 sale of his two Duck Donuts franchises, misleading the buyer and causing a $300,000 loss.
• Butler has a background in franchising, owning Duck Donuts locations in Woodbury and the Mall of America, as well as Rita’s Italian Ice, often in partnership with his wife, Desirae Butler.
• He is employed at Bremer Bank and has been recognized as a Black business leader in Minnesota, but his business dealings have led to legal disputes, including a countersuit against the franchise buyers and small claims cases possibly related to unpaid services.
• Customer reviews of his former Duck Donuts locations are mixed, praising freshness and service but criticizing high prices and inconsistent quality.
• No records of bankruptcy or major unpaid debts were found, but the ongoing fraud case poses significant legal and reputational risks.

Overview

Justin Ansel Butler is a Minnesota-based entrepreneur and banking professional known for his involvement in the franchise industry. Born around 1984, he resides in Woodbury and works as an executive at Bremer Bank in St. Paul, where he has been employed in roles related to financial services. Butler entered the franchise business with his wife, Desirae, leveraging their corporate backgrounds to invest in foodservice ventures. They owned and operated Duck Donuts franchises at 7455 Currell Blvd. in Woodbury and inside the Mall of America in Bloomington, as well as a Rita’s Italian Ice location. These businesses focused on made-to-order donuts and Italian ice, targeting family-friendly markets in the Twin Cities area. Butler has been highlighted in media as a Black franchisee advocating for diversity in business, including discussions on social issues like the George Floyd protests and receiving grants like Comcast RISE to support Black-owned businesses during the COVID-19 pandemic, which impacted his sales by 48%. In 2022, he sold the Duck Donuts franchises, a transaction that later led to criminal charges.

Allegations and Concerns

• Fraud in Franchise Sale: Butler is accused of editing financial documents to falsely portray his Duck Donuts franchises as profitable, swindling the buyer out of $300,000. The charges include felony theft by swindle, stemming from the 2022 sale. The buyer, identified only as LDS in court documents, reported the fraud after discovering the discrepancies.
• Countersuit Involvement: In 2023, Butler filed a lawsuit against LongGame Inc. and individuals named the Schraws (likely the buyers or related parties), alleging fraud and breach of contract in the same transaction.
• Other Red Flags: Small claims disputes in 2022 and 2023 with Pure Plumbing LLC suggest potential issues with unpaid services or contractor disputes, though details are limited to conciliation court filings. No broader patterns of complaints from employees or regulators were identified, but the fraud allegations raise concerns about ethical business practices.

Customer Feedback

Customer reviews primarily focus on the Duck Donuts locations formerly owned by Butler, with feedback gathered from platforms like Yelp, TripAdvisor, Facebook, and Reddit. Overall ratings hover around 4.4 stars, indicating generally positive but polarized experiences.

• Positive Reviews: Many customers praise the freshness, customization, and friendly service. Examples include: “Great and fast service. The donuts were delicious and made fresh. I loved that they have a variety of different flavors to choose from plus the seasonal donuts.” Another: “Duck Donuts is awesome! Great customer service and donuts were fluffy and not too sweet.” Reviewers also highlight unique offerings like donut sundaes, with one TikTok user calling it “life-changing.”
• Negative Reviews: Complaints center on high prices, overrated quality, and poor service. For instance: “#DuckDonuts is over priced, over rated and customer service is terrible all in 1st visit.” A Reddit user noted: “Donut’s aren’t bad per say, but a bit expensive and they all taste the same no matter what special flavor of the month they do.” Some mentioned unresolved corporate complaints, with one reviewer waiting a month for a response from Duck Donuts headquarters.

No reviews directly reference Butler by name, suggesting feedback is tied to the brand rather than personal management.

Risk Considerations

• Financial Risks: The fraud allegations involve misleading representations of profitability, which could indicate broader issues with financial transparency in Butler’s ventures. Potential buyers or partners face risks of overvalued assets, as seen in the $300,000 loss to the Duck Donuts buyer. Pandemic-related sales drops highlight vulnerability to economic downturns.
• Reputational Risks: As a recognized Black business leader, the charges could damage his standing in community and professional networks, including associations like the MN Black Chamber of Commerce. Media coverage of the case may deter future partnerships or employment opportunities in banking.
• Legal Risks: Ongoing felony proceedings carry severe penalties (up to 20 years imprisonment and $100,000 fine), potentially leading to asset forfeiture or restrictions on business operations. Small claims cases suggest minor but recurring disputes.

Business Relations and Associations

• Family Partnerships: Butler collaborates closely with his wife, Desirae Butler, in franchise investments, including Rita’s Italian Ice and Duck Donuts.
• Franchise Affiliations: Former franchisee of Duck Donuts (under Duck Donuts corporate) and Rita’s Italian Ice. He was featured in Franchise Times for his operations and received recognition in the Zor Awards.
• Professional Networks: Employed at Bremer Bank; associated with NEOO Partners for negotiations like the Mall of America location. Involved with the MN Black Chamber of Commerce and Comcast RISE program for Black-owned businesses.
• Other Associations: No major corporate partnerships beyond franchising, but legal ties to LongGame Inc. and the Schraws through the 2023 lawsuit.

Legal and Financial Concerns

• Lawsuits: Felony charge for theft by swindle (January 2025), with first court appearance in February 2025. 2023 civil suit filed by Butler against LongGame Inc. and the Schraws for fraud and breach of contract. Small claims: Pure Plumbing LLC vs. Butler in 2022 and 2023, likely for unpaid plumbing services (conciliation court).
• Unpaid Debts/Bankruptcy: No evidence of bankruptcy filings or major unpaid debts. The small claims cases may involve minor financial disputes, but no large-scale issues reported.
• Financial Records: No public disclosures of personal or business bankruptcies; however, the fraud case highlights alleged manipulation of financial statements.

Risk Assessment Table

Justin Butler presents a mixed profile: on the positive side, he has demonstrated entrepreneurial success in franchising, building businesses from corporate experience and contributing to diversity initiatives in Minnesota’s Black business community. Pros include strong networking (e.g., chamber affiliations, grants) and a track record of operating popular food outlets despite challenges like the pandemic. However, the cons are significant—the felony fraud charges suggest a pattern of questionable financial practices, potentially eroding trust in any future dealings. The countersuit and small claims add to concerns about reliability in contracts and payments. Cautionary advice: Avoid business engagements with Butler until the legal case resolves, as conviction could lead to severe repercussions. For investors or partners, conduct thorough due diligence on financials, and consider alternatives in the franchise space with cleaner records. Overall, while Butler’s story highlights resilience, the risks currently outweigh the benefits for high-stakes associations.