1851

The pizza industry is booming, with the market projected to reach&nbsp;<a href="https://www.pizzamarketplace.com/news/pizza-market-to-grow-by-422-million-by-2025/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=140-unit-pizza-hut-franchisee-files-for-bankruptcy-amidst-legal-battles-and-financial-challenges-2726910" target="_blank" rel="nofollow">$42.2 million by 2025</a>. Industry giant&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-pizza-huts-franchise-costs-fees-profit-and-data-2722519#stories">Pizza Hut</a>, one of the world's largest pizza chains, offers a lucrative franchise opportunity with over 19,000 locations in more than 100 countries. However, for one big time multi-unit franchisee, the investment has led to bankruptcy.One of Pizza Hut’s largest franchisees,&nbsp;<a href="https://www.eympizza.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=140-unit-pizza-hut-franchisee-files-for-bankruptcy-amidst-legal-battles-and-financial-challenges-2726910" target="_blank" rel="nofollow">EYM Pizza LP</a>, filed for Chapter 11 bankruptcy protection on July 22, 2024, in the Eastern District of Texas. EYM, which is based in Irving, Texas, was founded in 2008 by McDonald’s Mexico former president&nbsp;<a href="https://www.linkedin.com/in/eduardodiazb-801684a1/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=140-unit-pizza-hut-franchisee-files-for-bankruptcy-amidst-legal-battles-and-financial-challenges-2726910" target="_blank" rel="nofollow">Eduardo Diaz</a> and operates over 140 Pizza Hut locations across Wisconsin, Illinois, Indiana, Georgia and South Carolina. EYM listed significant debts in its bankruptcy filing, including over&nbsp;<a href="https://www.pennlive.com/life/2024/07/pizza-hut-franchisee-with-140-units-files-for-bankruptcy.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=140-unit-pizza-hut-franchisee-files-for-bankruptcy-amidst-legal-battles-and-financial-challenges-2726910" target="_blank" rel="nofollow">$20 million</a> to Manufacturers Bank and&nbsp;<a href="https://www.franchisetimes.com/franchise_news/large-pizza-hut-franchisee-files-for-chapter-11-following-lawsuits/article_3a78a942-4904-11ef-bb76-ef7a0a079a65.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=140-unit-pizza-hut-franchisee-files-for-bankruptcy-amidst-legal-battles-and-financial-challenges-2726910" target="_blank" rel="nofollow">$2.2 million</a> to Pizza Hut.The closures have affected local employment, with workers being told to file for unemployment. Pizza Hut has stated plans to transition these locations, anticipating many will reopen soon.This bankruptcy follows a series of legal disputes between EYM and Pizza Hut. Earlier this year, EYM sued Pizza Hut for breach of contract, accusing the franchisor of failing to stay competitive, but the case was dismissed. Subsequently, Pizza Hut countersued EYM for late royalty payments and store underperformance, claiming EYM is one of its worst-performing franchisees. These legal battles, coupled with the financial strain from the pandemic and rising operational costs, have culminated in EYM’s bankruptcy. This scenario is part of a broader trend, as other large franchisees, like NPC International, have also filed for bankruptcy since the pandemic.The legal disputes between EYM and Pizza Hut underscore deeper operational and financial challenges.These issues reflect broader struggles within the chain, with&nbsp;<a href="https://www.yum.com/wps/portal/yumbrands/Yumbrands/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=140-unit-pizza-hut-franchisee-files-for-bankruptcy-amidst-legal-battles-and-financial-challenges-2726910" target="_blank" rel="nofollow">Yum! Brands</a> reporting a&nbsp;<a href="https://retailwire.com/pizza-hut-franchisee-files-for-chapter-11/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=140-unit-pizza-hut-franchisee-files-for-bankruptcy-amidst-legal-battles-and-financial-challenges-2726910" target="_blank" rel="nofollow">7% decline</a> in Pizza Hut’s same-store sales in the most recent quarter, a sharp contrast to the&nbsp;<a href="https://www.qsrmagazine.com/story/large-pizza-hut-franchisee-files-bankruptcy-amid-legal-battle-with-franchisor/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=140-unit-pizza-hut-franchisee-files-for-bankruptcy-amidst-legal-battles-and-financial-challenges-2726910" target="_blank" rel="nofollow">7% increase</a> seen the previous year.&nbsp;Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=140-unit-pizza-hut-franchisee-files-for-bankruptcy-amidst-legal-battles-and-financial-challenges-2726910" target="_blank" rel="nofollow">www.1851growthclub.com</a> and start your journey.

Pizza Hut 140+ Unit Franchisee EYM Files for Bankruptcy

1851 Franchise

EYM Pizza LP has been involved in a series of legal disputes with the franchisor. After closing 15 locations, the franchisee has filed for bankruptcy.

140-Unit Pizza Hut Franchisee Files for Bankruptcy Amidst Legal Battles and Financial Challenges

140-unit-pizza-hut-franchisee-files-for-bankruptcy-amidst-legal-battles-and-financial-challenges

CapitalSpring

Primetime Fitness Expands Crunch Portfolio With CapitalSpring’s Backing

primetime-fitness-expands-crunch-portfolio-with-capitalsprings-backing

Children's Lighthouse

How Children’s Lighthouse Franchisees Scale to Multiple Locations

how-childrens-lighthouse-franchisees-scale-to-multiple-locations

Express Employment Professionals

Betting on Himself: How Chris Brown Built an Express Employment Professionals Franchise From the Ground Up

betting-on-himself-how-chris-brown-built-an-express-employment-professionals-franchise-from-the-ground-up

Comfort Keepers

Comfort Keepers® Named One of America’s Best Home-Care Providers

comfort-keepers-named-one-of-americas-best-home-care-providers

United Water Restoration Group

How a New Franchise Owner Elevated Her Business to a Record-Breaking Year — While Working Full-Time

how-a-new-franchise-owner-elevated-her-business-to-a-record-breaking-year-while-working-full-time

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

Young Entrepreneur Parth Patel Is Bringing Paris Baguette to the Cleveland Area

young-entrepreneur-parth-patel-is-bringing-paris-baguette-to-the-cleveland-area

Cleaning Franchises Offer Stability and Scalability in a Changing Economic Landscape

cleaning-franchises-offer-stability-and-scalability-in-a-changing-economic-landscape

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

140-Unit Pizza Hut Franchisee Files for Bankruptcy Amidst Legal Battles and Financial Challenges

MORE STORIES LIKE THIS