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The Impact of a Franchisor’s Bankruptcy on the Franchisee

The immediate challenge for a franchisee of a bankrupt franchisor is how to stay in business during the franchisor’s bankruptcy. A Chapter 7 (liquidation) franchisor is not likely to meet any of its contractual obligations to its franchisees. This may also be true of a Chapter 11 (reorganization) franchisor, although many Chapter 11 franchisors do

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Which Way the Wind Blows

As we have explored on this blog previously, there has been endless discussion during this economic downturn concerning the effect current economic conditions will have on the franchising model. That discussion continues unabated, as evidenced by the following entries found through the briefest of internet searches: A franchise fix for the recession blues? – BNET Franchise leader

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Franchising: A Recession Proof Business Model?

As time has passed the downturn has continually revealed itself to be worse than originally expected. And yet there are some writers who suggest that franchising will weather this storm better than other business models. Plug in the terms “franchising” and “recession” into a Google search and the first four entries offer favorable commentaries on

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