Published May 1998; 52 pages; Price: $52.00 (Electronic) / $62.00 (Hardcopy) 

Description

FranchiseHelp conducted a study in 1998 investigating the following questions:

• What are the effects, if any, on a franchisee when the franchisor experiences bankruptcy? 
• Are franchisees affected by the franchisor’s bankruptcy?
• If the franchise is affected, in what ways?
• Is there anything that the franchisor (or franchisee) can do to lessen a potential negative effect on the franchisee’s business?

The companies examined in this anecdotal study are: The Italian Oven LLC (The Italian Oven Restaurant), DFO, Inc.* (Denny’s) and Sizzler Restaurants International, Inc. (Sizzler American Grill).

Note that technically the holding company, Flagstar Companies, Inc, filed for bankruptcy, not the franchisor DFO, Inc., but the effect is the same.

In addition, there is a mini-study on Kenny Rogers Roasters, which declared bankruptcy (3/98) just as we completed this report.

Advantages: 

FranchiseHelp believes the information contained in this report is valuable for lenders to franchisees and franchise systems, to rating agencies and underwriters, and to franchisors, franchisees, and potential franchise investors.