If I can help just a little by sharing my understanding of the $250K settlement - albeit we are not given great detail, I might be able to shed some light on what I gleaned from the article.
This was a lawsuit that was settled. The plaintiffs (Terri & her parents) likely sought compensatory damages for real money lost, and possibly punitive damages. Lawsuit grounds were misrepresentations in a franchise agreement for a Chubbys restaurant investment. Compensatory damages had to be proven and documented by the plaintiffs (Terri & family) (actual business expenses, etc.) - typically in the form of debt/bills/investments, etc. they had to actually spend that amount of money.
The article indicates the lawsuit purported that the investment required was misrepresented by Chubby's in the franchise agreement. In other words, there was some sort of question about fraud/misrepresentation of investment costs....
Maybe the initial Chubbys franchise investment was $20K, (example only) - initially, but eventually investment likely exceeded $250K over time. The business failed (IMO) (i.e. from the article -"did not go well"). And, as a result of the investment and misrepresentations in the franchise agreement, there were hidden costs and, likely unexpected losses sustained by Terri (and her parents).
IMO, That's quite something to win such a lawsuit.
So, while we don't know the extent of the losses claimed here, we know the case settled (no trial). Its safe to assume damages (losses) were at or greater than $250,000 - and the final figure for compensatory damages were negotiated between the parties. In other words, Terri's parents recouped at least some of the investment they made in a business that failed and the recouped it through a lawsuit.
There's really no way to know if they received any part of the settlement was beyond compensatory damages, and/or attorney costs - and into punitive amounts. But there is assumed risk inherent in any business venture. It's highly unlikely that either Terri or her parents got rich off that business venture, or that lawsuit. Im guessing, (due to the fact that they were able to settle the thing), Terri & her parents lost money on this investment, even after the lawsuit. (Plus they had to pay their attorney costs
)
Perhaps the most telling thing to me when I read this was that Terri & her parents won a sizeable lawsuit on franchise misrepresentation. To me that says, they know how to hire good legal counsel.
All JMHO.