Overview

Franchisors and franchisees going through restructuring face special challenges because of the interplay of state law and federal bankruptcy law. For example, in most states franchisors can’t unilaterally terminate franchise agreements, while franchisees are generally not permitted to assign the agreement. The limitation is designed to strike a balance between competing interests, but it’s a balance that can be upset if one of the parties is involved in a restructuring. Changes to the U.S. Bankruptcy Code have had additional impact on franchise bankruptcies. With so much pressure in such a complicated situation, you want an experienced team of advisors on your side. We’ve advised both franchisees and franchisors through the restructuring process, identifying key issues and challenges and crafting workable solutions. Simply knowing the rules is not enough. Instead, we help you understand what is important and work to alleviate some of the pressure so you can focus on the future of your business.

Experience

  • QSL of Medina, et al. – representation of franchisor Quaker Steak and Lube and twenty-six related entities in chapter 11 cases involving going concern sale of franchise system with more than 50 locations.
  • ASIC Broward LLC - Counsel to a multi-unit franchisee of Five Guys Enterprises, LLC in a chapter 11 bankruptcy case. (Bankr. S.D. Fla.)
  • AppleILLINOIS - Counsel for the DIP lender and pre-petition lender to an owner of 33 Applebee’s restaurants in a chapter 11 bankruptcy case. (Bankr. N.D. Ken.)
  • Duke and King Acquisition - Debtor’s counsel to a franchisee of 92 Burger King restaurants sold in a chapter 11 bankruptcy case. (Bankr. D. Minn.) 
  • Kazi Food of New York, Inc., et. al. - Debtor’s counsel to a franchisee of 140 KFC restaurants sold in a chapter 11 bankruptcy case. (Bankr. E.D. Mich.) 
  • CCI of West Palm - Debtor’s counsel to a franchisee of 19 TGI Friday’s restaurants sold in a chapter 11 bankruptcy case. (Bankr. S.D. Fla.)
  • Representation of a competing bidder in a chapter 11 auction sale for Flat Top Grill’s casual dining restaurants (Bankr. S.D.N.Y.)
  • Big Buck Brewery & Steakhouse - Counsel to the debtor in a chapter 11 reorganization of the franchisor. (Bankr. E.D. Mich.)
  • Counsel to an owner and operator of multiple southwestern grill restaurants in an out-of-court restructuring (Arizona, Texas and California).
  • Counsel to a franchisee of 45 casual dining restaurants in an out-of-court workout with its lenders. (New York)
  • Counsel to an owner-operator of 19 casual dining restaurants in a workout with its lenders. (New York)
  • Counsel to one of the largest franchisees of a national doughnut chain in an out-of-court workout.
  • Counsel to franchisors and franchisees in various cybersecurity matters.

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