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A Delaware bankruptcy court has sided against Applebee’s parent company, Dine Brands Global, in its efforts to take control of 160 units owned by RMH Franchise Holdings, who filed for bankruptcy protection in May.

According to Restaurant Business Online, Dine Brands argued that RMH Franchise Holdings franchise agreement had already been effectively terminated by then, but a judge ruled that Applebee’s corporate parent didn’t provide the required “clear and unambiguous notice” that it was terminating its franchise agreement with RMH prior to its bankruptcy filing

RMH Franchise Holdings, the 1,900-unit restaurant chain’s second-largest franchisee, can now use the units to appease creditors by either selling or shutting them. The franchisee currently owes Applebee’s International Inc. $14.2 million in royalty fees and advertising costs, the article noted.

Read the full story here.

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Madeline Lena

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Madeline Lena

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Maddie has spent her career in the media industry, serving in various editorial roles before migrating into a hybrid content strategy and PR role with No Limit Agency. Her passion for storytelling and love of writing help her create meaningful content on behalf of her clients and fulfill No Limit Agency’s mission to tell people-driven stories. 

Maddie is a graduate of Saint Louis University, where she studied Communications with a focus in journalism and media studies as well as Sports Business. In her spare time, Maddie can be found exploring Chicago’s food scene, watching an NBA game or lamenting over her middling fantasy baseball team.

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