Restructuring Concepts for Troubled Restaurant Franchisees: A Special Report from McDonald Hopkins Law Firm

CLEVELAND, Dec. 16, 2011 /PRNewswire/ -- It should come as little surprise that rising food and commodity costs, unstable energy prices and high unemployment are key ingredients to the current stagnant economy affecting the fast food and casual dining industry in the United States. While 2010 showed signs of growth, some fast food and casual dining franchises struggled. Given the relatively low menu prices and ubiquitous attraction for the average American consumer, one would assume that restaurant franchisee's fortunes do not falter when the economy lags. In a low margin business, maintaining high customer volumes is critical to success. Unfortunately, that success is not the reality for every restaurant franchisee.

As in any garden-variety restructuring, the fate or fortunes of a troubled business are dictated by, among other things, access to capital, existing contractual arrangements, the strength of its management team, and an overall demand for its products or services. A distressed restaurant franchisee situation includes many of these same issues; however, in most cases, the franchisor wields atypically strong leverage in the process. This article outlines five concepts to which a franchisee's manager or advisor should pay particular attention when faced with a distressed restaurant franchise. While these topics may be self-explanatory, they are sometimes overlooked.

Click below to read the McDonald Hopkins Business Restructuring and Bankruptcy Special Report:

McDonald Hopkins Law Firm Special Report; Restructuring Concepts for Troubled Restaurant Franchisees

http://www.mcdonaldhopkins.com/alerts/alert.aspx?id=MDw0lZKSb0uQF-vXs44ZOA

For more information, please contact:
Michael J. Kaczka
216.430.2028
[email protected]

Scott N. Opincar
216.348.5753
[email protected]

About McDonald Hopkins

McDonald Hopkins is a business advisory and advocacy law firm with offices in Chicago, Cleveland, Columbus, Detroit, Miami, and West Palm Beach. The firm's comprehensive legal services are provided by teams of specialized attorneys and professionals in areas such as business law, litigation, business restructuring and bankruptcy, estate planning, government affairs, healthcare, intellectual property, labor and employment, and mergers and acquisitions. The president of McDonald Hopkins is Carl J. Grassi. For more information about McDonald Hopkins, visit www.mcdonaldhopkins.com.

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Scott Opincar
https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=106110

SOURCE McDonald Hopkins LLC

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