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
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
Atlanta Bread Company will be next
There big breakthrough menu item was introducing a sandwich containing the heavy marketed Peppadew.
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…
James Home Services – Australian’s worst franchise!
http://jamesmasterlies.wordpress.com/2011/08/01/problems-with-james-home-services/
It’s great to know these pending failures so you can make informed business decisions about which franchises to buy. Thanks!