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

HomeTeam Inspection Service

Photo of HomeTeam Inspection Service franchisees Tyler and Doug Butler

How a Chance Encounter Led This Father-Son Duo to a Thriving Home Inspection Business

doug-tyler-butler-hometeam-franchise-success-story

Sola Salons

Photo of Campbell family, featuring Austin and Nick Campbell

Building a Legacy Through Sola Salons: The Campbell Family’s Journey in Franchising

family-business-legacy-sola-salons

Sparkle Squad Window Cleaning Services

Photo of Sparkle Squad team member cleaning window

Sparkle Squad: How This Founder-Led Window Cleaning Franchise Is Changing the Industry

sparkle-squad-franchise-opportunity

World Gym

The Mental Benefits of Strength Training: Boost Confidence, Reduce Stress and Improve Clarity

the-mental-benefits-of-strength-training-boost-confidence-reduce-stress-and-improve-clarity

Harri

Connected Workforce: What It Means for Large Multi-Unit Franchisees Facing Labor Challenges

connected-workforce-what-it-means-for-large-multi-unit-franchisees-facing-labor-challenges

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 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

Fly Dance Fitness Expands With First Franchise Location in Georgia

fly-dance-fitness-franchise-expansion

&pizza - Fast-Casual Pizza Chain Begins Franchising - 1851 Franchise

&pizza Embraces Franchising To Fuel Bold New Growth Strategy

andpizza-franchising-ceo-mike-burns

CFOs See Recession as Likely in ’25; Why Now Is the Time To Water the Franchise Buyer Seeds

cfos-see-recession-as-likely-in-25-why-now-is-the-time-to-water-the-franchise-buyer-seeds

Ellie Mental Health Franchisee Backlash - Alleged Misrepresentations - 1851 Franchise

Ellie Mental Health Faces Franchisee Backlash Over Alleged Misrepresentations

ellie-mental-health-franchisee-backlash

Tariff Tensions Threaten U.S. Restaurants with Rising Costs and Supply Chain Disruptions

tariff-tensions-threaten-us-restaurants-with-rising-costs-and-supply-chain-disruptions

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

Photo of a basket of chicken wings with dipping sauce and celery

RestaurantNews: Franchisees File Comprehensive Legal Complaint Against Hurricane AMT

restaurantnews-franchisees-file-comprehensive-legal-complaint-against-hurricane-amt

1851 Agg - McDonald's Sales Decline Expansion Continues - 1851 Franchise

McDonald’s Franchisees Feel the Pressure as Sales Decline and Expansion Continues

mcdonalds-franchisees-feel-the-pressure-as-sales-decline-and-expansion-continues

Design with hundred dollar bill and orange "recession" banner across the middle

ABC News: Recession Risks Are Rising, Economists Say. Here’s What to Know.

recession-risks-impact-economy-franchise-world

Florida Franchisee Reflects on Success and Growth with Sylvan Learning

florida-franchisee-reflects-on-success-and-growth-with-sylvan-learning

The Top Quick Service Restaurant Franchises for 2025

the-top-quick-service-restaurant-franchises

Top 25 Emerging Restaurant Franchises - 1851 Franchise

Top 25 Emerging Restaurant Concepts to Consider in 2025

top-emerging-restaurant-concepts-to-consider

Franchisee spotlight featuring Ian and Dick Rydholm with gradient blue background and Sylvan logo

Ian and Dick Rydholm Celebrate 30 Years of Transforming Lives Through Sylvan Learning in El Paso, Texas

ian-and-dick-rydholm-celebrate-30-years-of-transforming-lives-through-sylvan

Military Veteran and Craft Beer Enthusiast to Bring Voodoo Brewing Co. to Toledo, Ohio

military-veteran-and-craft-beer-enthusiast-to-bring-voodoo-brewing-co-to-toledo-ohio

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

MORE STORIES LIKE THIS