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A Delaware bankruptcy court has sided against <a href="https://www.applebees.com/en/opportunities/domestic/domestic-request?utm_source=1851franchise.com&utm_medium=article&utm_campaign=court-sides-against-applebees-parent-company-in-dispute-over-franchise-contracts-2708002" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">Applebee&rsquo;s</a>&nbsp;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. 

<a href="https://www.restaurantbusinessonline.com/financing/court-sides-against-applebees-franchisor-dine-brands-dispute-over-160-units?utm_source=1851franchise.com&utm_medium=article&utm_campaign=court-sides-against-applebees-parent-company-in-dispute-over-franchise-contracts-2708002" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">According to Restaurant Business Online,</a> Dine Brands argued that RMH Franchise Holdings franchise agreement had already been effectively terminated by then, but a judge ruled that Applebee&rsquo;s corporate parent didn&rsquo;t provide the required &ldquo;clear and unambiguous notice&rdquo; that it was terminating its franchise agreement with RMH prior to its bankruptcy filing

RMH Franchise Holdings, the 1,900-unit restaurant chain&rsquo;s second-largest franchisee, can now use the units to appease creditors by either selling or shutting them. The franchisee currently owes Applebee&rsquo;s International Inc. $14.2 million in royalty fees and advertising costs, the article noted.

Read the full story <a href="https://www.restaurantbusinessonline.com/financing/court-sides-against-applebees-franchisor-dine-brands-dispute-over-160-units?utm_source=1851franchise.com&utm_medium=article&utm_campaign=court-sides-against-applebees-parent-company-in-dispute-over-franchise-contracts-2708002" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">here</a>.

Applebee's, Dine Brands Global, RMH Franchise Holdings, Franchising, franchise agreement

Court Sides Against Applebee’s Parent Company in Dispute Over Franchise Contracts

1851 Franchise

160 stores remain in the control of bankrupt franchisee RMH Franchise Holdings, who plans to use the units as assets for creditors.

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