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Franchisors at or near Bankruptcy

Here is a partial list of franchisors that have filed bankruptcy, or are reported near filing bankruptcy recently.

  • Perkins
  • Marie Callender’s
  • Old Country Buffet
  • Real Mex Restaurants
  • Giordano’s
  • Cork and Olive
  • Dial-a-Mattress
  • Bally Total Fitness
  • Friendly’s
  • Souper Salad
  • Sbarro
  • Dippin’ Dots
  • The Little Gym
  • Fatburger (A little controversial -Fatburger parent company not part of bankruptcy, but the two subsidiaries accounted for 72% its total revenue in 2008. The bankruptcy came under pressure from G.E. Capital Business Asset Funding, which Fatburger owed $3.9 million for defaulted loans.)
  • Mrs. Fields / TCBY

A bit older bankruptcies.  It shows that some brands can recover quite well, especially Denny’s, Day’s Inn, 7-Eleven and Church’s Chicken:

  • Bennigan’s – 2008
  • Baker’s Square – 2008
  • Roadhouse Grill – 2007
  • Ground Round -2004
  • Boston Market – 1998
  • Denny’s – 1997
  • Church’s Chicken – 1991
  • Sizzler’s – 1996
  • Krystal – 1995
  • Day’s Inn – 1990
  • 7-Eleven – 1990

About Ryan Knoll

Attorney and advisor with an interest in franchising. Feel free to email me comments and questions on the "Contact Us" page.
3 comments
Franchise Clique
Franchise Clique

It's great to know these pending failures so you can make informed business decisions about which franchises to buy. Thanks!

Peter
Peter

Very helpful. It's good to know which areas to steer clear of with regards to starting your own frachise. There are a lot of restaurants mentioned here...