Chip Gaines of HGTV's 'Fixer Upper' sued by former business partners

Credit: Laura Cavanaugh

Credit: Laura Cavanaugh

“Fixer Upper” couple Chip and Joanna Gaines have made a name brand for themselves on their HGTV program in which they renovate old homes and redecorate them. But two old business partners of Chip’s have filed a suit against him alleging fraud.

>> Read more trending news

According to documents, Chip Gaines bought out John L. Lewis and Richard L. Clark, two former owners, of their realty company, Magnolia Real Estate Company, days before their show "Fixer Upper" was picked up of by HGTV, KWTX reported. The show makes many references to ventures featuring the word "magnolia."

>> Related: 'Fixer Upper': Goats shot, killed on Chip and Joanna Gaines' Texas property

The 24-page suit was filed Wednesday at the state district court in Waco, Texas.

"Lewis and Clark were equal partners with Gaines in founding the Magnolia Real Estate Company in 2007," KWTX reported.

Gaines bought each partners’ share for $2,500.

>> Related: HGTV to air 'Fixer Upper' and 'Flip or Flop' spin-off shows

“With this insider information in hand, Chip Gaines convinced plaintiffs to sell their membership interests in Magnolia Realty quickly to him before a public announcement that ‘Fixer Upper’ was picked up by HGTV,” the suite claims.

>> Related: Chip Gaines of 'Fixer Upper' asks for 'respect' after report on church's anti-gay stance

Since the launch of the show, the Magnolia name has been integrated into nearly all of their projects, including a magazine titled "The Magnolia Journal" and Magnolia House, a bed and breakfast.

"We are confident that these claims will be found to be meritless, and it is disappointing to see people try to take advantage of the hard work and success of Chip and Joanna Gaines," Gaines' attorney told Fox News.

>> Related: These “Fixer Upper” selfies are everything you love about Chip and Joanna Gaines