Dine Brands is the parent company of Applebee’s, and RMH Holdings is the second-largest Applebee’s franchisee.
Dine Brands and RMH Holdings are involved in a very complicated lawsuit that appears to consist of a lot of finger-pointing, according to a Business Insider report.
Dine Brands is the parent company of Applebee’s, a casual dining restaurant chain, and RMH Holdings is the second-largest Applebee’s franchisee.
Dine Brands claimed in a lawsuit that RMH Holdings owes them more than $23 million in unpaid royalties and fees. RMH Holdings addressed this in a court filing and said they refused to pay because Dine Brands made decisions that were “ill-advised and value-destroying,” Business Insider reported.
According to RMH, this mismanagement on the part of Dine Brands included requiring Applebee’s locations to install costly wood-fired grills.
Earlier this year, RMH Holdings filed for bankruptcy after a phone call with Dine Brands in which Dine Brands demanded the franchisee pay $12 million by the end of the day or face having a number of their stores shut down.
“They thought they could keep doing what they were doing for a longer period of time,” Dine Brands CEO Steve Joyce told Business Insider in an interview earlier this month. “But they were doing it for a long time.”
Read the full story at BusinessInsider.com.