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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

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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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