Applebee’s Sues Franchisee In Ch. 11 Over Deal Breaches

Law360, Wilmington (May 25, 2018, 7:20 PM EDT) -- The parent company of Applebee’s Neighborhood Bar and Grill sued a bankrupt franchisee in Delaware on Friday, saying the debtor breached franchise agreements by closing several restaurants without permission and ceased making royalty payments several months before its Chapter 11 filings.

Dine Brands Global Inc. filed an adversary proceeding against RMH Franchise Holdings Inc. seeking declaratory judgments that the franchise agreements governing the companies’ relationship were terminated as of April 27, well before the Chapter 11 cases were filed, and enforcing Dine Brands’ rights to take control of some of RMH’s restaurants.

The complaint alleges that beginning in June 2017, RMH...

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